More Aussies buying property

More Aussies buying property

Posted on Thursday, May 02 2013 at 12:29 PM

Buyers are coming back to the property market in droves, encouraged by lower interest rates.

Mortgage broker
company Australian Finance Group says the number of mortgages processed in
April 2013 was 40 per cent higher than in April 2012. The company processed
$3.2 billion in home loans, compared to $2.2 billion a year ago. April’s $3.2
billion figure was also the company’s largest ever volume for one month,
following a record-breaking month in March, where the broker arranged $3.17
billion in home loans.

General manager
of sales and operations Mark Hewitt says the lower interest rates are paying

“With greater
certainty that low rates will be with us for some time, we’re seeing more
confidence in the market than for some time,” he says.

“But recovery,
like property price growth, is very patchy. For example, both in New South
Wales and Queensland, first homebuyers comprise only 3.5 per cent of the market
– about a quarter of the long-term figure.”

Fixed rate loans
are also at an all-time high of 30.7 per cent and non-major lenders managed to
claw back some market share, rising from 20.7 per cent in March to 21.1 per
cent in April.

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