Investors dominate the mortgage market

By |
Strong investor demand continues to govern the home loan market. 

The latest AFG Mortgage Index shows that investment home loans now comprise 40% of all new home loans nationally.

On a state by state basis, home loans for investors also took up the lion’s share of the market. 

•    In New South Wales investor loans came to 50.9%;
•    In Victoria they were 39.8%;
•    In South Australia they comprised 35.9%;
•    In Queensland they were 34.5%; and 
•    In Western Australia they amounted to 29.8%.

In contrast, the index shows that the proportion of first home buyer loans fell to their lowest ever levels in New South Wales (1.9%), Victoria (7.4%) and South Australia (6.3%) last month. 

The New South Wales figure means that fewer than 1 in 50 of the new borrowers processed were first home buyers.

However, in Queensland the proportion of first home buyers rose to 5.2% from an all-time low of 4.7% last month, which in Western Australia they increased to 19.1% in November.

AFG general manager of sales and operations Mark Hewitt said there has been an imbalance in the market since the axing of first home buyer grants in several states. 

“Last month was the closest to zero we’ve recorded for New South Wales. First home buying is well below its long term trend of around 12% - 15% everywhere except Western Australia.”

In Western Australia, first home buyers receive a $10,000 state government grant if they move into a new build property, or $3,000 if they buy an established property.

Hewitt added that last month AFG processed $4.4 billion in home loan finance.

This figure was down slightly from a record high of $4.7 billion in October, but 11.5% higher than for November 2013.


 

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Top Suburbs : goulburn , albion , wallsend , millner , balga

go back

Get help financing your investment



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here