More Australians are looking to take out a home loan to purchase property, a trend that began well before the traditional influx of borrowers for the start of spring.
Mortgage applications have been rising steadily for 12 months and peaked at 12.5 per cent in the June quarter, according to the latest Veda Quarterly Consumer Credit Demand Index.
NSW leads home loan growth
New South Wales and the ACT experienced the largest growth in mortgage applications at 21 per cent and 19.5 per cent respectively. This was followed by Victoria at 13.3 per cent, Queensland at 11.7 per cent and South Australia at 8.1 per cent.
The two interest rate cuts by the Reserve Bank in the June quarter are believed to be behind the strong mortgage pickup. Some of the growth can also be explained by consumers switching between providers as the low interest rate environment has encouraged many to shop for a better deal on their mortgage finance.
With interest rates at their lowest for more than 50 years, it comes as little surprise that more and more Australians are exploring the benefits of purchasing and investing in property. There are great rates and features available if you know where to look. Talk to us and let us do your home loan leg work for you.