Latest NewsHome Loans Continue Upward TrendMonday, 01 May 2017

A solid rise in home loans this last quarter provides further indication that the property market remains resilient.

December was the fourth consecutive month to show an increase in the value of loan commitments for dwellings. The value of home loans rose 2.5% in December.

Mortgage broker Mortgage Choice says this comes despite November’s much-discussed rate rises that led the Federal Government to set up an inquiry into banking reform.

"The number and value of commitments rose over the first month of summer for all major categories except for the purchase of new dwellings," says Mortgage Choice.

"In terms of total value, there was a 2.3% rise for owner occupied housing loans and a 3.0% rise for investment housing - fixed loans."

It says the first-home buyer category showed the highest number of dwelling commitments (8,586) since December 2009 - the last month the First Home Owner Grant boost was offered.

First-home buyers accounted for 15.8% of owner-occupied housing finance commitments for December, up from 15.6% in November and 15.4% in October.

"Four months of consistent increases in the total value of new home loans in Australia is a welcome improvement for the market," says Mortgage Choice spokesperson Kristy Sheppard. "Hopefully it demonstrates a noticeable uplift in positive sentiment from potential borrowers."

Previous Next

Share This Article




Previous Articles