Average home loan rises as demand drops
With the $14,000 first-home owners grant due to end on December 31, Australian Bureau of Statistics figures released yesterday showed the average home loan is now around $150,000.
The ABS statistics also showed growing trend away from banks as a preferred source of finance. The number of housing loans provided by the banks fell by 5.7 per cent to 39,463, taking the banks' share of the house-lending market to 75.3 per cent in October, from 77.9 per cent in September.
Finance provided by credit unions, wholesale lenders, insurance companies and superannuation funds hit a new high-water mark rising 12 per cent increasing their market share to 20.5 per cent.
This will be particularly encouraging for credit unions which have found mortgage brokers to be an effective distribution channel for home loans allowing them to compete on par with the major banks.
The ABS data also noted that
- the number of housing loans dropped 2.5 per cent in October to 52,365 – the lowest since May 2001.
- the average Australian home loan rose 20.8 per cent to $151,200 in the year to October, experiencing its biggest annual increase since 1989.
- Loans for first home buyers now averaged $144,900, a 25.9 per cent surge on the previous 12 months.
- Home loans for all other home borrowers rose 19.7 per cent to an average of $153,300
The Age Online 11/12/2001
The Australian Financial Review Online 11/12/2001
Sydney Morning Herald Online 11/12/2001