The broking franchise has reported a sharp rise in home loan settlements, particularly via both the first home buyer and investor segments of the market.
Aussie Home Loans has revealed that its broker network has seen a significant shift in home lending activity in the first month of Spring.
The brokerage reported that settlements for investors refinancing with Aussie increased 20 per cent on the previous corresponding period.
First home buyer (FHB) settlements also increased, rising by 9 per cent over the same period, contributing to total owner-occupied volume growth of 4.6 per cent in September.
According to Aussie, the sharpest FHB volume growth was recorded in the ACT, NSW and South Australia, where settlements rose by an average of 13 per cent, while Queensland and Victoria also recorded increases of 4.2 per cent and 6.4 per cent, respectively.
Reflecting on the result, Aussie CEO James Symond said the shift in activity has come in response to recent market developments, which include the Reserve Bank of Australia’s (RBA) cuts to the cash rate.
“This spring property season we’re seeing some positive results, most prominently among first home buyers and investors refinancing their loans, in comparison to last year,” he said.
“It’s an early indication to us that Australians are starting to feel more confident in the market and are wanting to capitalise on the current conditions — which includes the record low cash rate of 0.75 per cent.
“Whether you’re looking for your first home, next home or an investment property, now could be the time to take action.”
This follows the release of the Australian Finance Group’s (AFG) first quarter 2020 (1Q20) trading update.
AFG revealed that its broker network lodged $15.7 billion in home loans over 1Q20, up 11 per cent on the same quarter in 2018.
The improvement was mostly driven by spikes in home lending activity across Australia’s east coast, led by NSW, where lodgements were up 16 per cent from the previous corresponding period, followed by Victoria and Queensland (10 per cent).
Lodgements also increased in South Australia and Western Australia when compared with 1Q19, albeit less pronounced, rising by 5 per cent and 4 per cent, respectively.
The improvement in home lending activity is also reflected in the Australian Bureau of Statistics’ (ABS) latest Lending to Households and Businesses data, which has reported a 2.9 per cent rise (seasonally adjusted) in the value of home loans settled in August.
The uptick in August followed a 5.1 per cent rise in July — the largest monthly increase since March 2015.
[Related: AFG volumes propelled by market tailwinds]
Charbel Kadib is the news editor on The Adviser and Mortgage Business.
Before joining Momentum Media as a journalist in 2017, Charbel held roles with public relations agency Fifty Acres, and the Department of Communications and the Arts.
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