Powered by MOMENTUM MEDIA
subscribe to our newsletter

FHB loans hit four-year low

The number first home buyer loans being written through the broker channel have reached their lowest levels in four years.

Released this week, the AFG Mortgage Index reveals that loans for first home buyers comprised only 9.5 per cent of all mortgages processed in August – the lowest figure since June 2010.

Of the total $3.9 billion of home loans processed by the company, $324 million were for first home buyers.

Meanwhile $1.5 billion worth of mortgages were written for investors.

NSW recorded the lowest proportion of first home buyer loans with 3.5 per cent, while 5.5 per cent was recorded in Queensland last month.

Advertisement
Advertisement

Victorian first home buyers accounted for 9.4 per cent of all loans processed by AFG, 9.8 per cent in South Australia and 21.0 per cent in Western Australia.

AFG general manager sales and operations Mark Hewitt said the long term average for first home buyer loans is around 12 per cent – 15 per cent of the total.

“We saw overnight slumps from those levels when NSW and QLD withdrew first home buyer grants two years ago,” Mr Hewitt said.

“Since then, property prices in Sydney in particular, have been steadily increasing,” he said.

“This represents a double-whammy for first home buyers. It also has important socio-economic implications when, even with interest rates at historic lows, people can’t afford to get on the property ladder.”

PROMOTED CONTENT


 

FHB loans hit four-year low
mortgagebusiness

Latest News

The RBA has cautioned lenders and the financial sector against “excessive risk-taking” amid rising asset prices, including looser lendin...

First home buyer loans hit its second highest level in over a decade in February, but levels are expecting to drop as house prices continue ...

A not-for-profit organisation has announced a new grant funding round for social and affordable housing projects in the Northern Territory a...

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.