Home loans rise again

By Despina Priala | 14 Aug 2007
Owner-occupied home loans were up by 1.1% in June – the seventh consecutive monthly increase – according to the Australian Bureau of Statistics (ABS).

Total housing finance by value rose by 9.2%, standing at $24.390bn after seasonal adjustment.

Economists put the upsurge down to an investor-led recovery. RBC Capital Markets senior economist Su-Lin Ong said: “[The data] is very much consistent with a stronger housing market all-round in terms of lending, construction and prices.

“We saw a pretty strong house price index today from the ABS as well, so [the data] is definitely supportive of this idea that the housing downturn that we’ve had in Australia since the peak in late 2003 is pretty shallow and mild.”

Ong said she doubted the 0.25% increase in interest rates would halt the latest housing upswing.

Commonwealth Bank economist Joseph Capurso agreed, adding that there was still strong demand on the investment side.

“Owner-occupiers are still rising as well [and] population growth is very strong – so there are very good fundamentals for a recovery in housing finance,” he said.

Top Suburbs : geelong west , whyalla , belmont , tuart hill , marrickville


Get help with your investment property

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 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 an appointment is free.

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