At a time when interest rates are still at historically low levels, more and more Australians are seeking to buy properties, leading to a surge in new housing loan contracts. Monthly statistics from the Australian Bureau of Statistics show that in August, the total amount of new housing loans, including investors, soared by 12.6%, with new real estate loans of A$21.3 billion.
Victoria, Queensland and NSW saw the largest increase in mortgage contracts for new owners. According to data from ABS Securities, personal debt increased by A$1.4 billion in August, a decrease of 12.5% from the previous month. The surge in real estate loans also coincides with Westpac’s change in lending policy, which will make it easier for customers to borrow from major suppliers.
Lower housing loan standards mean that home buyers will have a greater ability to borrow more money than before. Anthony Hughes, managing director of Westpac Mortgage Business, said that the reduction of the main loan indicators is to take into account the economic changes caused by the new crown pneumonia.
