Home loans more affordable

The latest AMP Banking/REIA Home Loan Affordability Report shows that lower interest rates, lower monthly repayments and higher weekly family income during the December 2001 quarter made home loans more affordable than at any time since June 1999. During the quarter 128,000 mortgage loans were taken out, worth more than $20 billion, which was about 50 per cent than in December 2000 and the second highest amount ever recorded.

While median house prices increased during the quarter and the average home loan rose to $157,967, monthly repayments actually declined due to lower interest rates.