Australian Property News

Mortgage uptake bounced back in August

Posted on Tuesday, September 07 2010 at 2:45 PM

August mortgage figures were up 10.9 per cent from July despite uncertainty over the Federal Election result, according to mortgage broker Australian Finance Group (AFG).

The AFG Mortgage Index revealed that over August and July, first homebuyer sales climbed from 9.5 per cent of the market in June to 11.7 per cent in August due to increased competition among lenders and boosted loan-to-value ratios.

“The impact of government grants, which had the effect of bringing forward first homebuyer demand, seems to have washed through the system,” said AFG executive director Kevin Matthews.

“With property prices in many areas having stabilised and some lenders prepared to lend up to 95 per cent of a property’s value, property is becoming more accessible to first homebuyers and more attractive to investors, especially when compared to the volatile performance of stockmarkets,” he said.

New South Wales saw the greatest return of first homebuyers in August, where they represented 15.5 per cent of the market, compared to 11.7 per cent in June, according to The AFG Mortgage Index.

The index revealed that investors tend to prefer NSW and Victoria, where they represent 36.9 per cent and 36.4 per cent respectively of all mortgages sold in those states.

However in Western Australia and Queensland, uncertainty over the possible mining super tax appears to have resulted in a taper off of investor interest, said Matthews.