Powered by MOMENTUM MEDIA
subscribe to our newsletter

Victoria leads the way in property funds growth

Between the quarters of July and September, the total volume of mortgages lodged in Victoria rose to 11 per cent, the highest in any state, new research has found.

According to analysis undertaken by comparison website comparethemarket.com.au, in partnership with mortgage broking services group AFG, the total volume of mortgages lodged in the first quarter of the 2018 financial year totalled $4.9 billion, up from $4.45 billion the prior quarter. 

On a year-on-year basis, the growth was more marked, recording a 17 per cent increase. 

In comparison, NSW only recorded a 1 per cent increase in mortgages lodged over the September quarter, with the year-on-year figure actually showing a 4 per cent decline to $5.2 billion. 

Total funds lodged in real estate transactions in the mining state of Western Australia remained depressed; for the fifth straight quarter, WA had a 3 per cent decline in the volume of funds lodged between the fourth quarter of the previous financial year and the first quarter of this financial year. 

Advertisement
Advertisement

WA mortgages were down by a whopping 19 per cent year-on-year to $1.5 billion. 

In Queensland, between the end of the previous financial year and the first quarter of the current one, there was a 2 per cent decline in the volume of funds lodged through AFG, with year-on-year transaction figures sitting at -8 per cent.

Overall, there was a jump in AFG’s home loan volumes from $14.5 billion to $15.1 billion since last quarter.

Comparethemarket.com.au spokesperson Abigail Koch said that the figures show that the property market is “facing a fork in the road” ahead of potential rising interest rates and in response to “a bull run in real estate”, as borrowers and lenders respond to tighter lending rules.

She commented: “Existing and prospective property owners need to do their homework as Sydney’s property market is plateauing after recent highs, while other markets like Melbourne are improving, which will produce plenty of good buying opportunities, but also risks in some markets.” 

PROMOTED CONTENT


Ms Koch noted that investor loans were at the lowest level since the first quarter of FY2013, at just 29 per cent of all transactions lodged last quarter — reflecting changes in prudential standards — while the number of borrowers refinancing loans has dropped from 29 per cent of AFG loans processed in the final quarter of FY2017 to 25 per cent this quarter.

[Related: Refi boom winding down: AFG]

Victoria leads the way in property funds growth
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Annie Kane

Annie Kane is the editor of The Adviser and Mortgage Business.

As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts. 

Contact Annie at: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

Reverse mortgage lenders have accessed a small fraction of the potential retiree housing market in Australia, according to Deloitte. ...

Pepper Money has priced its second I-Prime deal for the year, upsizing the figure to $850 million. ...

The LMI provider has announced a new CFO following the resignation of its current CFO, effective 24 September. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.