Investors account for almost 40% of March mortgages

Investors account for almost 40% of March mortgages

Posted on Tuesday, April 01 2014 at 2:59 PM

If there was any question about the resurgence of investors back into the market, latest figures reveal 39.6 per cent of all mortgages processed in March were for investors.

Australian Finance Group
(AFG), Australia’s largest mortgage broker, says two in five new home loans
last month were processed for investors. The figure is record-breaking,
according to AFG, being the highest recorded in the seven years it has been
reporting mortgage data.

Mark Hewitt, general manager of sales and operations
says: “Investors have been driving the market for most of the past 12 months to
the point that two in five of all new home loans in March were for investors.
The 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.”

Fixed rate loans comprised 23.9 per cent of all
mortgages processed in March, a significant decrease from 30.7 per cent of
April 2013.

“The fact that fixed rate loans are now less
popular than they have been for most of the past year suggests that borrowers
are also less concerned about the prospect of potential rate rises,” Hewitt

In New South Wales, investors comprised a
whopping 49 per cent of all new home loans. In Queensland and Victoria it was 37
per cent and in South Australia and Western Australia investors accounted for
32 per cent.

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