Aussies slam the brakes on borrowing

Demand for new home loans fell 47 percent in January from the strong business levels experienced in the September quarter. AFG managing director Brett McKeon said AFG mortgage brokers had generated on $1.5 billion worth of new loans in January – the worst result for the broking chain since January 2005. “People are not moving or upgrading their family homes – they have slammed the brakes on borrowing,” he said.

NAB said they had received encouraging signs of growth in mortgage enquiries and applications since repricing its variable rate mortgage in December. Westpac also said they had seen strong growth in mortgage applications in January.

Source: Herald Sun