Powered by MOMENTUM MEDIA
subscribe to our newsletter

Two out of five loans for investment, says AFG

The AFG Mortgage Index found 40 per cent of all new home loans processed in May were for investment property.

Australia’s largest mortgage broker processed $4.2 billion in mortgages last month, the first month on record that AFG has processed two out of every five new home loans for investors. 

The $4.2 billion figure is 17 per cent higher than for May 2013, and four per cent above the previous record volume of $4.0 billion processed by AFG in October 2013.

“Despite the fall in consumer confidence caused by the recent federal Budget, low and stable interest rates are a key factor in encouraging borrowers to participate in the real estate market,” AFG director Kevin Matthews said.

“Recent independent research shows that one in two borrowers are now using mortgage brokers, which no doubt also contributed to our record result,” Mr Mathews said.

Advertisement
Advertisement

Investment volumes in NSW were the highest in the country in May, at 49 per cent.

Close to half of all mortgages written in NSW over the past year have been for investment purposes, according to AFG.

Investor demand also accounted for 40 per cent of all new home loans in Victoria last month – the highest figure recorded by AFG in the state.

Queensland has also seen a steady rise in investor activity during the past three months, from 32 per cent of all new home loans in February to 39 per cent in May.

Investor activity accounted for 34 per cent of mortgage volumes in South Australia and 31 per cent in Western Australia last month.

PROMOTED CONTENT


 

 

Two out of five loans for investment, says AFG
mortgagebusiness

Latest News

Citi is to exit its consumer business, including mortgages, loans, retail banking and credit card operations, in Australia and 12 other ...

The major bank’s CEO has reiterated that responsible lending changes could simplify the lender’s processes and improve mortgage approv...

The non-major has reported growth in housing lending as well as a rise in home loan settlements via the broker channel. ...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Tackling the home deposit challenge

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

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