Aspiring property owners are increasingly uncertain about their chances of affording a new home and are willing to purchase with smaller deposits, while the majority of renters fear being forced to move by their landlord, new research commissioned by the Finance Brokers Association of Australia (FBAA) has revealed.

FBAA managing director Peter White AM said while many of the findings in the ‘FBAA Buyer Renter Index Research’ were not surprising, it emphasises that “the Australian property dream is still well and truly alive, but governments must work harder to help people achieve it.”

The research found that half of those surveyed were planning to purchase residential property in the next five years, while 30 per cent say they can’t afford it during that timeframe.

Mr White said the Reserve Bank (RBA) should also be listening.

“There has not been an interest rate change since 2023 and it would not surprise me if they again left it unchanged this week,” he said.

“But the clear message from this research is that people are crying out for help and support in the area of government and regulatory policies.

“They desperately want to own property but are demanding action to help them.”

He said while the FBAA commissioned research, by CoreData, reflected the uncertainty and insecurity felt by many Australians, it was clear that Australians were working hard to achieve their property dreams.

“They don’t want handouts, but they do want policies that make it easier for them, not harder.”

He said an interest rate cut sooner rather than later would be a huge confidence boost, while he repeated the FBAA’s call for the government to intervene and force the regulator (APRA) to immediately reduce the serviceability buffer rate from its current rate of 3 per cent.

Mr White also urged potential buyers to see their broker and get all of the “pros and cons” before purchasing with very low deposits.

“What many buyers don’t realise is that there are often more purchasing options than they realise and some of those options can only be accessed through a finance and mortgage broker.”

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Key findings of the ‘FBAA Buyer Renter Index Research’ include:

• Just over half (53 per cent) of those intending to buy in the next two years think it’s a good time to buy, but despite this, 70 per cent say they are actively looking.

• More than half of buyers now look to deposits of less than 20 per cent, and 54 per cent of prospective buyers plan to purchase a property with less than 20 per cent deposit, meaning they will need to take out lenders mortgage insurance or seek alternatives like guarantor loans.

• Rental instability is high, with 54 per cent of renters feel likely to be forced to move or have their contract not renewed. 74 per cent say they face difficulty finding a suitable property, signalling a lack of renter security.

• More than one in three (34 per cent) of participants anticipate their incomes will lag growth in house prices over the next five years.

• Compared to men, women are less certain and less optimistic about income growth in relation to house prices.

• 39 per cent of those with loans are showing signs of potential mortgage stress (allocating more than 30 per cent of their income to mortgage payments).

• 59 per cent of those who do not own property are dissatisfied with government tax policies, while 47 per cent are dissatisfied with government housing grants.

• Only 28 per cent of those who do not own property are satisfied with government social and affordable housing programs.