Australian Lending Peaks Record High
The government incentives and tempting low-interest rates are swaying buyers to get into the property market, spiking the mortgage loan borrowing higher than ever before. The latest data by ABS shows Australian borrowing rose for the seventh consecutive month and in December hit more than $26 billion in new loans. This is a 31.2 per cent year-on-year increase and 8 per cent up from November.
The owner-occupiers are the most encouraged demographic to contribute to the increase, growing at the rate of 39 per cent year-on-year, being approved for another $20 billion. Investors, however, took out more than $6 billion.
It’s not a surprise for first home buyers especially, as it is easier than ever before to get a mortgage loan. With relaxed lending guidelines and lower interest rates, not only they can get approved easier, but they can borrow more. Another contributing factor is the rising property prices across Australia, but especially in Brisbane. It is forecasted that Brisbane property prices will rise by 10 per cent this year alone, so a surge of first home buyers who now can borrow more, are trying to secure Brisbane property before the prices increase further.
Whether you’re a homeowner, investor or a first home buyer, you can benefit from the current property market conditions. With record-low interest rates, it is an opportune time to see what mortgage loan options might be available to you. Talk to our team of mortgage brokers here.