Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

Demand for home loans reaches six-year high

The number of owner-occupied mortgage commitments has hit its highest level since September 2009.

There were 54,686 owner-occupied mortgage commitments in March, according to the Australian Bureau of Statistics. That was up 5.1 per cent on the previous year.

That included a 7.1 per cent increase in loan approvals for established homes to 46,105 and a 3.4 per cent increase in loan approvals for new homes to 2,777.

Advertisement
Advertisement

However, the number of loan approvals for the construction of new homes fell 7.4 per cent to 5,804.

The average mortgage commitment for an owner-occupier grew 7.3 per cent to $342,500, while the average mortgage commitment for a first home buyer rose 7.8 per cent to $326,300.

Mortgage Choice chief executive John Flavell said the spike in demand could partly be attributed to low interest rates.

Mr Flavell also said that the increase in property prices could be pulling more investors into the market.

Meanwhile, home buyers also made $31.6 billion of housing finance commitments in March, which was up 15.6 per cent on the previous year.

The owner-occupied share of those commitments climbed 12.4 per cent to $18.7 billion, while the investor share jumped 20.6 per cent to $12.9 billion.

Over the year, investors increased their share of mortgage commitments from 39.1 per cent to 40.8 per cent, while first home buyers rose from 12.6 per cent to 14.7 per cent.

Demand for home loans reaches six-year high
mortgagebusiness

 

Latest News

Suggestions that the big banks ignore the best interests of mortgage customers when pricing home loans is “just not supported by the fac...

A Coalition MP has revealed that the 10,000-loan cap for the government’s FHB scheme was designed to appease LMI providers, in the heat of...

The federal government has been urged to take “immediate action” on the reform agenda set by the banking royal commission. ...

FROM THE WEB
podcast

LATEST PODCAST: Mortgage pricing and product switching

Do you think the mortgage market will see more consolidation this year?

Website Notifications

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