Home Loan Watch 23/04/10 Size of first homebuyer loans increases

Increased property prices have resulted in a boost to the size of loans taken out by first homebuyers.

A JP Morgan/Fujitsu report on the mortgage market shows that first homebuyers borrow an average of $280,000, about the same as established borrowers.

If interest rates were to rise to pre-GFC levels, first homeowners would be committing about 50% of their after-tax income to mortgage repayments, the report said.