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.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Sep 21, 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