Market/Finance News Blog: Lending for property continues to rise

By the resi financial blog team, 15 April 2015

Market/Finance News Blog: Lending for property continues to rise

As a home owner, you're likely to have a lot on your plate. Whether you're juggling repayments or saving up to add another property to your investment portfolio, finding ways to improve your household's fiscal standing takes a fair bit of work. This isn't stopping people from taking out loans for a new home however, with housing finance figures from the Australian Bureau of Statistics (ABS) has revealed moderate growth in the lending market. 

ABS data shows that lending for owner occupation grew 1 per cent over the month to February. Investors continue to make up a big proportion of the market, although there are signs that this segment could be easing back. The Housing Industry Association reported that, in seasonally adjusted terms, investment loans dropped 3.4 per cent during February - but is still a whopping 9.9 per cent higher than the same period last year. 

Investors are also sinking their funds into established properties. Around 90 per cent of investment lending in February was direct towards existing homes - but new builds still take the cake. The number of loans for purchasing and building new homes increased over the month, rising 5.4 per cent and 0.6 per cent respectively. HIA Economist Geordan Murray said this could confirm the building industry is set to continue its red hot streak. 

"This is a relatively positive result against a backdrop where lending to households purchasing existing homes eased back modestly," Mr Murray said in an April 10 statement. 

With housing finance remaining relatively steady over the month, it's worth looking into what home loan options are available for your scenario. Speak to a resi loan specialist for a wide selection of possibilities. 

Categories: Home Loans