Recent rate cuts and the boost to the First Home Owner Grant (FHOG) are drumming up a surge in mortgage enquiries, with one lender recording an 80% increase in enquiries since mid-October.
The increased funding on offer through the FHOG is sure to stimulate more competition within lenders, said Kevin Sherman, managing director of online lender MyRate.com.au.
"The FHOG increase, together with the aggressive rate cuts, is sure to fire up lending volumes. This helps all lenders, which increases competition and helps keep interest rates low, and this is incredibly important for those who are experiencing mortgage stress," Sherman said.
"With a rental crisis currently affecting many Australians, people may even find that the monthly repayments on a home loan could be cheaper than their current rental payments."
For those who are entering the property market for the first time, Sherman recommends that they shop around for the best possible deal.
"There are many loan products in Australia offering similar bells and whistles," he said, "but with huge varying interest rates."