Borrower demand has reached record highs, with one leading mortgage broking company recording its biggest month for home loans ever.
AFG processed $4.057 billion in home loans last month, its biggest month ever and the first time the company has broken the $4 billion mark.
The figure is 12 per cent higher than the $3,624 million processed the month before, which was a record in itself.
The October 2013 figure is also 30 per cent higher than that recorded by the company for October 2012, and 61 per cent higher than for October 2011, showing how far the mortgage market, and broader economy, has recovered over the past two years.
Across the country, there were significant variations in markets.
South Australia’s figures were 19 per cent higher than the month before and Victoria’s were 18.8 per cent higher. Queensland and NSW occupied the middle ground with increases of 11.8 per cent and 10.9 per cent respectively, while WA’s volumes were up only five per cent on September.
Mark Hewitt, general manager of sales and operations said "Low rates and intense competition amongst lenders are making the home loan market not only more attractive, but also more complex.
“Consumers are increasingly turning to brokers to help locate the overall package best suited to them."
Fixed home loans held steady, accounting for 27.7 per cent of all home loans processed.
AFG’s Mortgage Index again recorded huge disparities in the proportion of first home buyers across the different states, reflecting the withdrawal of first home grants in QLD and NSW.