Home loan demand has bounced back throughout the month of May, according to new data from the Australian Bureau of Statistics.
The latest Housing Finance data found 54,061 loans were approved throughout May, up 1% from the previous month.
“This bounce back in home loan demand is a positive sign for the property market and the broader economy,” Mortgage Choice franchisee Rhye Livingstone said.
“That said, this bounce back in home loan demand is hardly surprising. The fact is, the property market remains relatively buoyant, with historically low interest rates keeping the cost of borrowing low and heat in the market.”
According to the data, the value of all dwelling commitments rose 1.3% to $33.03 billion over the month of May.
“While there was a 2.9% rise in the value of home loan approvals for owner-occupied housing, we saw a 1.4% drop in the value of investment loans” Mr Livingstone said.
“Of course, I am not at all surprised by this. Over the past few months, Australia’s banks have been significantly tweaking their policy and pricing in relation to investment lending.
“In particular, we have seen some significant changes in the area of interest only loans. Some lenders have raised their pricing, while others have adjusted their policy.
“As a result, we have seen some potential property investors put their purchase plans on the backburner indefinitely.”
Looking forward, Mr Livingstone said he expected home loan demand to remain relatively strong, especially in the owner-occupied space.
“Interest rates are still low and will remain so for some time to come. In addition, some of the states have introduced new first home buyer incentives, which should also help to keep some heat in the market,” he said.
“That said, the Australian property market is very complex at the moment. So, anyone thinking of buying or refinancing should speak to their mortgage broker to ensure they find the right product for their needs.”
For further information or to arrange an interview with, please contact:
Mortgage Choice Frankston
Ph: 0459 958 893
This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.
About Mortgage Choice
Mortgage Choice is an ASX listed company that seeks to help Australians with all of their financial needs.
Established in 1992, Mortgage Choice was originally established to help Australians improve their financial situation by offering a choice of home loan providers, coupled with the expert advice of a mortgage professional.
Since that time, the company has grown and developed into a fully fledged financial services provider.
Today, Mortgage Choice helps customers source car loans, personal loans, credit cards, commercial loans, asset finance, deposit bonds, and risk and general insurance.
Further, the company offers Australians access to real, relevant and affordable financial advice through our qualified financial advisers.
Mortgage Choice has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).
Mortgage Choice holds an Australian Credit Licence: no. 382869 and Mortgage Choice Financial Planning Pty Limited holds an Australian Financial Services Licence: no. 422854. Both licences are issued by ASIC.
Visit www.mortgagechoice.com.au or call customer service on 13 77 62.