Loan switching valued at $43 billion

Font size :

By Eleanore D. Sanchez

The government is seeing a surge in repurposed loans following the introduction of incentives given to owner-occupier classifications, as compared to investors in mid-2015.

The Reserve Bank of Australia (RBA) reported that investor home loans went down by around 3% to more than $500 million in July this year compared to the same month in 2015.

“The net value of switching of loan purpose from investor to owner-occupier is estimated to have been $43 billion over the period of July 2015 to July 2016, of which $1.0 billion occurred in July,” RBA said.

The move to give incentives, specifically special rates, to owner-occupier mortgages was undertaken to address the strong surge in property prices in Sydney, where prices have gone up by more than 50% over the past three years, and to a lesser extent, in Melbourne.

Analysts from ANZ observed that the tighter regulation resulted in eased housing demand towards the end of 2015, but the market has since picked up at better-than-expected rates.

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

Friday, Sep 22, 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