Ensure you never miss an issue of the
real estate business bulletin
Borrowers take bigger loans

Borrowers take bigger loans

by Reporter 0 comments

Borrowers have almost doubled the size of their loans over the past five years, the latest Reserve Bank of Australia (RBA) figures have revealed.

According to the RBA, total housing debt hit $910.1 billion in December, up 92 per cent since December 2004.

Housing debt currently accounts for 135 per cent of disposable household income, compared to 75 per cent 10 years ago.

AMP Capital Investors chief economist Shane Oliver told News Limited that the pace of borrowing could exceed household income growth.

"Last year we started building 135,000 houses but the underlying demand was [for] 180,000 to 190,000," he said.

"This year we should start building about 155,000 houses but the underlying demand is close to 200,000.

"The RBA has to be careful raising interest rates because, if they go too far, they can end up tipping the economy over the edge.”

le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
Borrowers take bigger loans
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?