Record-Low Interest Rates Drive Home Loan Activity
There has been a massive increase in home loan borrowing over the past year, according to the latest data from the Australian Bureau of Statistics.
Australians took out $22.5 billion of mortgages in September – a 25.5% jump on the year before. That included increases of:
· 33.8% for owner-occupiers
· 4.2% for investors
There was also a massive increase in first home buyer activity among owner-occupiers.
First home buyers took out 13,569 loans in September. That was not only up 45.5% on the year before, but was also the highest figure in 11 years.
The surge in borrowing comes as no surprise – interest rates are at record-low levels. And with governments around Australia providing assistance for first home buyers, it’s no surprise to see so many younger buyers entering the market.