Western Australia sees rise in demand for mortgages

By the resi financial blog team, 09 September 2013

New mortgage requests up in Western Australia

New information from financial consumer data intelligence company Veda has shown that the level of demand for mortgages has increased in Western Australia and the rest of the country.

According to Veda's Consumer Credit Demand Index for the June 2013 quarter, there was a large rise in mortgage demand across the country. In fact, this was the biggest recorded rise since June 2010.

For the June quarter, demand for housing finance rose to 6.9 per cent, up from 1.9 per cent over the three months to March.

Western Australia ranked at number one for mortgage demand growth, and reported a rise of 15 per cent. As the state has a high level of mining development, the opportunity for investors to secure a mining investment property in some areas may be a contributing factor to the growth.

Other top performing states include New South Wales (13 per cent), Northern Territory (10.3 per cent), and South Australia (7.5 per cent). Tasmania and Australian Capital Territory were the only states to report a decline at 1.3 per cent and 3.3 per cent respectively.

At the same time, the index showed that the demand for personal loans and credit has reduced, which may indicate that people are looking to reduce or eliminate other debts and put their money towards purchasing a home instead.

Commenting on the results from the index, Veda general manager of consumer risk stated that this increased demand may suggest better housing market conditions in the future.

"Mortgage enquiries are a good indicator of home buyer demand, with movements in mortgage enquiries tending to lead movements in house prices six to nine months later," he said.

If you would like expert help finding the best fixed interest rates for a great mortgage to suit your requirements, contact one of the loan specialists at resi today.

Categories: Home Loans