Home loan volumes have significantly increased over the past year, especially among investors.
Investors committed to $10.67 billion of mortgages in May, according to the latest data from the Australian Bureau of Statistics. That was 29.5% higher than the year before.
At the same time, owner-occupier borrowing activity rose 12.2%, to $18.13 billion.
Investors were responsible for 37.1% of the home loans that were issued in May. Despite the surge, that’s only slightly higher than the long-term average (in records dating back to 2002) of 35.9%.
By way of comparison, investors’ share of home loan activity bottomed out at 22.4% in 2021 and peaked at 45.9% in 2015, while owner-occupiers’ share reached a low of 54.1% in 2015 and a high of 77.6% in 2021.
If you’re thinking about applying for a home loan, here are three important tips to make yourself more creditworthy in the eyes of lenders:
- Reduce your spending, to free up money to pay off a loan
- Pay all your bills on time, to maintain a good credit score
Contact your FPG Consultant, who will compare the market for you
There are many different types of finance we can help with
View our Services on our website or Contact Us to discuss your needs
