Driven by ultra-low interest rates and government support measures, first home buyers are flocking back to the real estate market, and Australia’s two largest mortgage brokerage firms have reported a surge in loan applications from young home buyers. AFG said that in the most recent quarter, its total housing loan applications increased by 30% year-on-year, and other brokers, including Mortgage Choice, also said that loan applications this summer increased significantly.
But at the time of the surge in loans, analysts expect that as banks stop providing automatic housing loan extensions to customers who are in financial stress due to the epidemic, foreclosure cases will rise slightly.
Mortgage brokerage firm Homeloanexperts.com.au said that since December last year, the volume of inquiries has increased by more than 60% over the same period last year, which also reflects the strong interest of first home buyers and Australian expatriates. In addition to the government’s support for first home buyers, banks have also eased the pressure by allowing customers to temporarily suspend repayments, but most borrowers will have to resume repayments from March, and several government stimulus plans will also be implemented during this period. End.
Real estate data analyst SQM Research general manager Louis Christopher said that all these stimulus and support measures will end at the same time, which may lead to a small increase in foreclosure cases, but he is not worried about a “mass forced sale incident.” “Banks are doing a good job of managing deferred loans, and they have fallen from their peak when the epidemic began.
https://www.smh.com.au/business/banking-and-finance/first-home-buyers-flood-back-into-market-on-low-rates-rising-house-prices-20210120-p56vl2. html