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More home loans for owner occupiers

By Kevin Kelly

Securing finance for real estate in Australind could become easier as it emerges that owner-occupier lending increased in August. The latest figures from the Australian Bureau of Statistics (ABS) show measures to kerb investor lending are apparently taking effect.

The Australian Prudential Regulation Authority (APRA) revealed on 9 December 2014 it would be taking action against some lenders. Its primary concern was that portfolio growth exceeding ten per cent could pose a significant risk for the market, so the group stepped in to impose restrictions.

ABS data shows that between July and August, the number of loans granted to owner occupiers increased 2.9 per cent. Meanwhile, lending for the construction of new properties was up 2.4 per cent, while loans for buying established dwellings experienced a 3 per cent rise.

The ABS also revealed that the value of loans for owner-occupiers was up 6.1 per cent month on month. This was against the backdrop of a 0.4 per cent fall in lending for investment housing.

APRA's intervention therefore seems to be taking effect, which could ultimately benefit you if you haven't yet purchased real estate in Australind. Official data revealed the number of first-time buyer commitments increased from 15.4 per cent in July to 15.7 per cent in August, showing the market is starting to move in the right direction.

The challenge now will be making sure owner-occupiers continue to take the lion's share of the market, as this may be what the market needs in order to make further progress.

Finding your next real estate in Australind

The team at Ray White Bunbury is here to make sure you find a property that suits your individual needs. In a market as popular as this, it can really pay off to have a team of experts on your side.

Get in touch to discuss your options and see what homes are currently available.

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