Property Investor Demand For Mortgages Highest In Six Years

Post by NeilMc on March 9, 2010 · Under news · Comment 

A survey conducted by a leading mortgage broker suggests that investors returning after their summer holidays took the largest share of the home loan market since 2004.

The survey commissioned by Australia Finance Group (AFG) suggests that property investors constituted 34.1 per cent of all mortgages the company arranged nationwide during February. The highest level recorded since the company first started compiling data.

AFG claims it arranges finance for over 10 per cent of the Australian home loan market.

“Investors are now the driving force of the market, encouraged by rising property prices in recent months, and the longer term view that a housing shortfall will continue to underpin future price growth as well as rental yields,” AFG’s general manager sales and operations Mark Hewitt said

Despite strong growth in property investment, AFG says the total value of loans it arranged was still below the level it was a year ago. The broker arranged $2.275 billion of new mortgages in February, compared with $2.674 billion in the previous year, a decline of 15 per cent.

The number of loans AFG arranged also declined by 18 per cent over the last 12 months to 6,294 from 7,673.

Compare Australian Home Loan Deals

Bookmark and Share

Related posts

Tags: , , , , ,

Comments

Leave a Reply







Sponsored Ads