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FHB loans hit four-year low

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.

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.”

 

FHB loans hit four-year low
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