Demand for home loans continues to run at record levels, according to the latest ABS figures.
New mortgage commitments were 4.4% higher in December, totalling $32.8 billion. These results were accompanied by a 5.3% rise in the value of home loans compared to November 2021.
If you’re considering whether to refinance your existing property or purchase a new property, these figures illustrate how the property market is still performing strongly and signals to be ready that you may need to borrow more than you originally thought.
Nationally, the average loan size for owner-occupier dwellings – these include mortgages for construction and the purchase of new and existing dwellings – increased to a record $602,000. That’s up by $6,000 on November’s average.
Average loan sizes are now at record levels in every state and territory except Queensland and Tasmania.
First-homeowner loans grew for a second successive month signalling that first home buyers are starting to return to the market after being deterred by both COVID-19 and rising property prices.
Another record has been set for investor loans. These reached $10.3 billion in December, which represents a month-on-month increase of 2.4%. Lending to investors has grown consistently over the past 14 months and made up around a third of new housing loan commitments in December.
If you’re thinking about buying property at the moment and need a new loan, here are my three key tips.
- Talk to me early. There are so many ways as your broker that I can save you money if you start the process early. Plus, banks and lenders can take their time approving applications which can be frustrating if you’ve found the perfect place.
- Keep your goals realistic. Property prices have really grown over the past year.
- Make sure your credit report is clean. It will make everything easier once we get to the nitty-gritty of your application