March 12, 2014
Total value of investment loans suffer slight drop in January
The total value of dwelling commitments dropped slightly in January, according to new research.
The ABS Housing Finance Data, released earlier today, found the total value of dwelling commitments fell 0.4% in January.
Investors were largely responsible for the drop in dwelling commitments, with the value of investment housing falling 3.3%.
On the flipside, total value of dwelling commitments for owner occupied housing surged 1.5%
But while the total value of dwelling commitments fell slightly in January, the number of home loans approved over the course of January remained high, suggesting the property market is continuing to perform very strongly.
At present, home loan approval numbers continue to hover around four year highs, driven largely by the low rate environment.
Mortgage Choice spokesperson Jessica Darnbrough said with the Reserve Bank of Australia indicating that a period of rate stability is the most prudent course of action moving forward, it is fair to assume home loan approval numbers will continue to be high for the short to medium term as buyers look to take advantage of low rates and aggressive lender competition
“With rates sitting at historically low levels at the moment, those with the ability to jump onto the property ladder realise that now is a good time to do so,” she said.
“Better yet, some of Australia's lenders are currently offering cash and other incentives to potential borrowers, which is encouraging more buyers to get onto the property ladder.”
“Regardless if you are an investor, first home buyer, upgrader or downgrader, if you can afford to purchase a property, now may be the time to do it,” she said.
With this in mind, Ms Darnbrough said it wasn't surprising to see a small lift in the percentage of first home buyers.
“According to the ABS, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments climbed to 13.2% in January from 12.7% the month before,” she said.
If you want to learn more about your home loan options, call 13 77 62. Or, visit www.mortgagechoice.com.au, Facebook.com/MortgageChoice or Twitter.com/MortgageChoice.
For further information or to arrange an interview, please contact:
Lauren Booke
Mortgage Choice Corporate Affairs
(02) 8907 0502 / 0448 240 047
Lauren.booke@mortgagechoice.com.au
Amity Harrold
PPR
(02) 9818 9334 / 0434 975 868
Amity.harrold@ppr.com.au
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