Home News Mortgage demand set to remain strong, says CEO

Mortgage demand set to remain strong, says CEO

Font size :
Home loan demand should continue to perform strongly in the following months, according to Mortgage Choice chief executive officer John Flavell.

He stated that many lenders are currently offering notable incentives to owner occupiers in order to win over more customers.

His comments come as home loan demand reached a six-year high in August, as revealed in the August Housing Finance Data by the Australian Bureau of Statistics. A total of 55,677 home loans were approved over the month, which was up 2.9% from July.

The demand for home loans has not been this strong since September of 2009.

“The last time more than 55,600 home loans were written in one month was back in 2009, when the boosted first home owner grant was in full swing,” Flavell remarked.

“To see a similar level of home loan demand in today’s market, when there is not only no boosted first home buyer incentives in place, but lenders are effectively trying to reduce their level of investment lending activity, is surprising and just goes to prove the strength of the housing market.”

Aside from observing a rise in the number of home loans approved in August, the total value of all dwelling commitments was also up. The total value of all dwelling commitments written was over $34 billion, which is a 3.5% improvement from the previous month’s figure.

“Data from CoreLogic found property prices across the combined capital cities climbed 0.3% over the month of August. As such, it is no real surprise to see the total value of all dwelling commitments on the rise,” Flavell said.

He also added that since the beginning of 2015, the average home loan size for all owner-occupied housing commitments has increased by 7%, raising the amount to $371,200.

Flavell also forecasted that the average home loan size will keep growing for as long as property prices continue to rise.


 

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

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

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

More mortgage news and articles

Sponsored Links

Monday, Jul 24, 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