Mortgage Lending Demand is on the Rise: Why it Matters
Recent data by CoreLogic and the Australian Bureau of Statistics revealed an increasing demand for mortgage lending after significant industry changes throughout 2019 that helped boost property prices as well.
Buyers can lend more now than before and with the increasing demand but limited supply of properties, you have got to get in the property ladder fast if you want to beat the competition. Check out the lending options available for first home buyers.
With more people looking for a home, your property is in demand to get a buyer who will be willing to pay more. Now is the time to think about your next property move or refinancing your current mortgage.
Overall, there’s been a 14 per cent year-on-year increase, and a 4.4 per cent month-on-month change in mortgage lending values in December 2019, making it the highest monthly growth rate in over three years. Let’s look at how it changed for investors and owner-occupiers.
For investors, there’s been a 2.8 per cent month-on-month change and a 4.9 per cent year-on-year change in mortgage loan commitments. When it comes to owner-occupiers, the mortgage loan demand has increased by 5.1 per cent month-on-month and 17.9 per cent year-on-year in December 2019. Such great year-on-year increase demonstrates that first home buyers and next home buyers are warming up to the property market and ready to commit to their property dreams.
With the increase of mortgage borrowing, property values are on the rise as well. As with more people borrowing loans in combination with a low supply of properties on the market creates a healthy competition that boosts prices. Such demand is due to some major changes that we saw throughout 2019 like APRA changes and slashed cash rate that aimed to help the property market recover. With APRA’s removing the criteria to assess repayments with 7 per cent floor rate and replacing it with a 2.5 per cent buffer, this means most people can borrow more than they could before.
Now is a great opportunity to take control of your mortgage needs. Get in touch with our team to find out how you can capitalise on your investment or first home buyer loan.
January data will be revealed on 11 March 2020.