In NSW, mortgage lending rose 25 percent, in Victoria 19 percent, in each of Qld and SA 17 percent, and WA 2 percent in the last quarter of 2019. The rise is due to improved lending conditions and increased investor confidence by top mortgage brokers. During the quarter, the broker network reported reports they handled $15.4 billion in home loan applications 19 percent more than they did in 2018 for the same period.
First home buyers
accounted for 15 percent of mortgages during the period – remaining
at the highest level since 2013. David Bailey, Australian Finance
Group's chief executive, says interest rate cuts and rate buffer
easing, which tests the willingness of borrowers to make repayments
if interest rates rise, have attracted borrowers back into the
market.
The outcome of the
Federal Election and the absence of obstacles to improvements in
negative gearing for property investors have helped improve market
sentiment. “It’s very clear that buyers have been enticed back to
the market and the data is showing us that there is an incontestable
trend away from the major banks. Consumers are empowered by the
enhanced competition in the home loan sector generated by mortgage
brokers and are reaping the benefits through greater choice and lower
prices,” says Mr. Bailey.
Non-major banks in
the September quarter represented 47 percent of loan applications,
the highest since 2007. More than half of the loans taken from
property investors were secured by non-major banks for the first
time, while first home buyers traditionally strong supporters of the
majors also voted with their feet with a record 36 percent of loans
arranged with a non-major bank. For the final quarter of 2019, the
average mortgage size was $539,000 compared to $508,000 for the same
period in 2018.
Source Here: Buyers Return To The Market
