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.


 

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

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate

The sprawling redevelopment aims to boost the supply of affordable housing in Sydney Read more

A new suburb will be built in west Melbourne A new suburb will be built in west Melbourne Mount Atkinson will become home to more than 22,000 people over the next 15 years ... Read more

Surging house prices threaten liveability in Melbourne Surging house prices threaten liveability in Melbourne Analysts warn the city could become just as unaffordable as Sydney, if property trends continue ... Read more

More Aussies would benefit from regional hubs linked to cities More Aussies would benefit from regional hubs linked to cities Shorter commutes could spur higher home sales in regional towns, analysts say ... Read more

More mortgage news and articles

Sponsored Links

Sunday, Aug 20, 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