Ensure you never miss an issue of the
real estate business bulletin
Borrower activity soars

Borrower activity soars

by Reporter 0 comments

Staff Reporter

It seems the Reserve Bank's decision to cut the official cash rate had a positive impact on Australia's borrowers, with the number of mortgages processed in November surging 18.4 per cent.

New data from mortgage broker aggregator AFG - which said it's responsible for around 10 per cent of mortgages settled in Australia - found over $2.9 billion of mortgages were processed in November – the highest such figure since March 2009.

Growth was particularly strong in Victoria, where mortgages processed leaped 26.7 per cent and Queensland with 20.8 per cent growth.

Mark Hewitt, general manager of sales and operations at AFG said while November is seasonally a strong month for mortgages, the rate cut certainly stimulated demand.

"We're experiencing the paradox that weaker global economic conditions and lower rates, is good news for Australian property buyers – at least for now. It's significant that investors and first home buyers are leading the action," he said.

"Many had been fearful that we were locked into a scenario of constant rate hikes. The November rate cut proved to be a real a turning point and the outlook is very different now."

The jump in activity may continue into early 2012, with 13 of 25 economists surveyed by Bloomberg confident the RBA will make a follow-up cut to interest rates tomorrow, when it's next due to make a decision.

AFG said property investors accounted for almost two out of every five mortgages sold in November – an all time record for the AFG Mortgage Index, which goes back six years.

Investors were especially active in New South Wales (44.6 per cent) and Victoria (39.8 per cent).

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; }
Borrower activity soars
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?