Powered by MOMENTUM MEDIA
subscribe to our newsletter
Boost in new home lending

Boost in new home lending

Despite ongoing threats of oversupply in some capital cities, a rise in buyer confidence prompted by the cash rate cut has seen finance for new builds continue to grow.

The June 2016 ABS housing finance figures show that finance for new dwellings and first home buyers remains at positive levels.

“The latest data supports the market view that new home buyers remain confident and that this will be further boosted by the recent interest rate cut,” CEO of Master Builders Australia Wilhelm Harnisch said.

Advertisement
Advertisement

“The number of housing loans for construction of new dwellings rose by 2.1 per cent and the number to purchase new homes rose by 2.7 per cent,” he said.

“Pleasingly, the number of loans to first home buyers held up well at 14.3 per cent of total finance approved.”

According to Mr Harnisch, first home buyer confidence will also be boosted by the recent rate cut.

“The relatively high number of housing loans will translate into higher levels of approvals and, in due course new housing activity in the next few months,” he said.

“This will ensure that the residential building sector remains a ray of sunshine in the economy, particularly in providing jobs.”

[Related: Home lending increasingly competitive, says RBA]

Boost in new home lending
mortgagebusiness

 

Latest News

The federal opposition has released its response to the final report of the banking royal commission, agreeing to 75 of the 76 recommendatio...

A class action suit has been filed against the major bank for allegedly approving home loans outside serviceability. ...

In its update on the implementation of Commissioner Hayne’s recommendations, the corporate regulator has hinted that it is investigating...

FROM THE WEB

POST RC PANEL DISCUSSION ADDED

podcast

LATEST PODCAST: The current mindset of the mortgage industry

Is enough being done to ensure responsible lending?