Home News Market Watch: Total home loan approvals down

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.

 

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

To break monopoly, many smaller lenders could become banks To break monopoly, many smaller lenders could become banks

The proposed change could break the Big Four’s monopoly over the mortgage market and help families get cheaper home loan rates Read more

Borrowing against the home: A strategy to pay for aged care Borrowing against the home: A strategy to pay for aged care Such debts can generally be divided into long-term and short-term loans ... Read more

NAB slashes growth forecasts for houses, units NAB slashes growth forecasts for houses, units Numerous factors, including tighter credit rules and the growing supply of new stock, have reined in Australia’s seemingly unstoppable housing market boom ... Read more

Broking industry wants to reform commission structures Broking industry wants to reform commission structures It argues that scrapping commissions altogether would push up the interest rates paid by consumers ... Read more

More mortgage news and articles

Sponsored Links

Friday, Jul 21, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • 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