Australia’s mortgage market is considered to be in a pretty healthy state according to a new report. The annual Genworth Home Grown report surveys mortgage professionals and homeowners with mortgages to assess their feelings about the state of the home loan business. The newly released results show that while the market is generally in good health there is more than needs to be done to give first-time buyers more access to mortgages; currently less than a third of all loans are for first-timers. Brokers are a first choice for many taking their first step on the property ladder.
The report also shows that consumers are concerned about the level of household debt, although lenders and brokers are less worried, given that home loan repayments are frequently ahead of schedule with many borrowers. Lenders also generally consider that regulations are about right to give a good balance between responsible lending and access to loans.
Mirvac chief says undersupply is driving up prices
The chairman of Mirvac Group has been speaking to investors at the firm’s annual general meeting and says that the main issue driving up prices is a lack of property. John Mulcahy says that while there is much talk of foreign investment and Mirvac has seen increased interest from overseas, that sector represents just 11 per cent of all settlements. He also acknowledged that investors (foreign and Australian) are purchasing above 50 per cent of all apartments and that is high, but still not a ‘bubble’.
ACT government asks for first option on Defence Dept. land
The ACT government has asked the federal administration to allow it first option to purchase surplus Defence Department land and property rather than allow it to flood the market. The territory government’s submission warns that releasing land onto the open market could have a negative impact on planning and development in the region and hopes that it will be given the chance to be involved in any consultation regarding the process. The property industry may hope for a better solution as there has been much criticism of the supply of land in ACT with calls for more availability.
Collections: Mortgage News