Home News Brokers predict home loan decline

Brokers predict home loan decline

Font size :

By Robert Carry

The reigning in of first homebuyer incentives and rising interest rates will bring about a significant reduction in the number of people seeking mortgages, Australian Finance Group's (AFC) general manager of sales and operations has said.

A recent report from the group found that the mortgage market cooled in October as the number of first homebuyers fell by 27% from the previous month.

Mark Hewitt, general manager of sales and operations said most people were
expecting a fall in first homebuyer activity. He added, "The fact that the rate rise cycle kicked in at the same time delivers something of a double-whammy. With the second rate rise announced last week we're expecting that there will be continued caution on the part of buyers."

According to the AFG Mortgage Index, the total volume of home loans advanced to
first homebuyers fell from $489m in September to $357m in October.

This contributed to an overall month-on-month contraction in the mortgage market of 11.5%, with the total volume of mortgages arranged by AFG falling from $2.9bn in September to $2.6bn in October.

Hewitt continued, "At their peak in March, when they were rushing to beat what they believed could be an end of financial year deadline, first homebuyers comprised 28% of the total mortgages arranged by AFG - a volume of $732m. By October that figure had halved to $357m.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

House prices return to more affordable levels in mining towns House prices return to more affordable levels in mining towns

While the end of the mining boom has had a negative impact on property prices, homes in the region have become more affordable Read more

Borrowers should anticipate a possible rate hike Borrowers should anticipate a possible rate hike Some experts advise borrowers to look for a fixed loan that allows extra repayments so that they can whittle down the balance sooner ... Read more

Why choosing the right mortgage is hard for first-home buyers Why choosing the right mortgage is hard for first-home buyers Many feel overwhelmed by the sheer range of products and interest rates on offer, a new survey reveals ... Read more

Mortgage applications drop in second quarter Mortgage applications drop in second quarter This marks the “beginning” of a downward trend, says Equifax executive ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Jul 27, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords