How do people really save their home savings?

Mortgage options find that most Australians heading toward the property ladder are trying to save money they need.

Entering the market has become increasingly difficult as real estate prices continue to reach new highs across the country.

Still, the latest mortgage options home loan report shows that over three quarters of potential homeowners of all ages are collected through personal savings only.

A total of 74% of the people surveyed (18-28 years old) said they funded their deposits through personal savings, with 70% of millennials (29-44 years old) and 69% of Gen X (45-60 years old) funding them.

Competition in the market is also fierce, with mortgage options submissions showing an increase in first-time homebuyer activity after the Reserve Bank cut its cash rate in February, especially in the March quarter.

The report shows that in the 12 months to March, the number of loans rose by 5.6%, while the value of loans also increased by 12.3% year-on-year.

Although personal savings are the main winners in deposits, many are still helping on hand.

Generation Z is the age group that is most likely to borrow funds to save on home deposits, with one-quarter (29%) of respondents identifying it as part of the plan.

Although many Gen Z seek property seeking deposits, the vast majority save without help. Image: Getty

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People aged 18-28 are also likely to receive cash gifts from their families to help pay deposits (22%), millennials (16%) and Generation X (8%).

Generation Z is also more likely to use the first home guarantee and the first home super protection program.

The discovery comes as new PropTrack data show that the median number of a home in Australia hit a new record in April, up 0.2% to $805,000.

Sydney, Brisbane and Canberra remain the most expensive capital cities to buy, with average house prices of $1,118,000, $882,000 and $822,000.

This article first appears on mortgage selection and is republished with permission.