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Mortgage boom continues until June

The mortgage market has been glowing for months after the government’s housing market reforms, with loans in June exceeding $ 8.5 billion.

Monday, July 26, 2021 15:26

The market was stable last month, with total mortgages falling from $ 8.9 billion recorded in May to $ 8.5 billion, up from $ 8.4 billion recorded in April.

The latest Reserve Bank statistics highlight the resilience of the mortgage market as prices continue to rise.

The $ 8.5 loaned last month will reduce the $ 5.3 billion borrowed in June 2020.

The first homebuyer’s loan surpassed the investor’s loan for the first time in a few months.

The first buyer borrowed $ 1.64 billion, while the investor borrowed $ 1.4 billion last month.

Other homeowners borrowed $ 5.3 billion from $ 5.5 billion last month.

The data provide more evidence that the housing market has refused to cool despite extensive government reforms in the housing market, including extended emission tests and gradual removal of interest deductions.

The breakdown of the LVR ratio shows that the new speed limit to curb investor activity is having an impact.

According to the Reserve Bank, the share of high LVR new mortgage commitments to investors fell from 32.1% in May to 28.2% in June, the seventh straight month of decline.

Over 70% of lending to investors has dropped dramatically in recent months.

From $ 844 million in November before the restrictions were reintroduced, only $ 132 million was lent to investors at that rate last month.

tag: lending

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Mortgage boom continues until June

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