Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Lending revival expected

Staff Reporter 3 minute read

Despite a recent drop in Australia’s housing finance figures, borrowing activity is expected to pick up this year spurred on by a faster than expected return to normal economic growth.

According to Australian Bureau of Statistics, the total value of owner occupied housing commitments (excluding alterations and additions) dropped by 5 per cent in January.

Personal finance fell 1.5 per cent while commercial finance dropped 1.6 per cent compared to the previous month.

On the other side of the spectrum, the value of commitments for the purchase of dwellings by individuals for rent or resale managed to grow by 2.4 per cent, indicating a return to confidence in the investor market.

Advertisement
Advertisement

The Commonwealth Bank of Australia senior economist John Peters said lending to owner-occupiers and investors is expected to increase as the spectre of unemployment recedes.

“After being scared witless last year, people are feeling more comfortable as each month goes by,” Mr Peters said.

“To some extent that will offset rising rates.”

Lending revival expected
default
TheAdviser logo

The not-to-be-missed Accountants Daily Strategy Day will travel through Melbourne and Sydney in August to equip accounting professionals with the latest industry updates and tips for modern practice management as well as the latest cutting-edge technology, processes, strategies and trends shaping the future of accounting. Visit the website for more information: www.accountantsdaily.com.au/strategy-day

PROMOTED CONTENT


default

 

more from the adviser
damian zaleski RYyr k3Ysqg unsplash

Breaking News

GetCapital launches broker platform

The business lender has rolled out a new broker platform, as it h...

fixed rate

Breaking News

Loyalty tax issue flagged to MPs

Brokers are key to holding lenders to account to ensure borrowers...

trade deal contract

Breaking News

Connective launches trail book marketplace

The aggregation group has announced a new arrangement with a spec...