Market Watch: Total home loan approvals down

Font size :
Total home loan approvals down in latest figures
Newly released figures show that mortgage approvals for November 2014 were down against the previous month, despite predictions for an increase. Australian Bureau of Statistics data reveals that total home loan approvals fell by 0.7 per cent from October; a 1.7 per cent increase had been expected. Approvals of loans to investors dropped 2.2 per cent after a revised 0.5 per cent gain in October. It was the biggest loss since January and snaps a 5-month run of increases. Owner-occupier loans fell by 0.2 per cent in November following a 1 per cent rise the month before. The Australian Prudential Regulation Authority has been keen to curb the growth in property being bought by investors due to its effect on the housing market.  
 
Increase in mortgage approvals for first home buyers
While the overall figure for home loans may be down there is better news for first home buyers. Commitments for those beginning their climb up the property ladder increased as a percentage of total owner-occupier loan approvals to 11.6 pent in November, up 0.2 per cent from October. The average loan size for first home buyers rose $2,600 to $317,600.
 
Property investors play the long game
Australian property investors are having to accept lower rental yields but are playing the long game with hope of capital gains from their portfolio. The Sydney Morning Herald reports that more than a million investors forego current income, and in many cases cover a shortfall between loans and income, in anticipation of greater returns later on. The ARPA and the Reserve Bank of Australia are keen to reduce the exposure that investors have to the property market and vice versa and figures from the Australian Taxation Office highlight the risk; in 2012 property investors filed $13.8 billion of losses with around two-thirds of landlords posting losses.

 

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

Saturday, Sep 23, 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