Two in five new home loans processed last month were for investors, according to Australia’s largest mortgage broker.
According to AFG’s monthly data, the figures have broken all records since reporting started seven years ago, with a total of 3,384 loans with a value of $1.6 billion processed for investors during March.
In NSW investors accounted for 49 per cent of all new home loans, in both Queensland and Victoria it was 37 per cent, and in both South Australia and Western Australia it was 32 per cent.
“A vast majority of these are mum and dad investors taking advantage of the equity in their existing properties and the low rate environment to build their property portfolio,” said AFG’s general manager of sales and operations, Mark Hewitt.
“The fact fixed rate loans are now less popular than they have been for most of the past year suggests borrowers are also less concerned about the prospect of potential rate rises.”
According to Mr Hewitt, fixed rate loans comprised 23.9 per cent of all mortgages processed in March, down from 25 per cent in February and a peak of 30.7 per cent in April 2013.