Borrow
Value of new home loans has climbed 70% since 2020
Equifax has flagged a significant increase in the value of new mortgages since the beginning of last year.

Value of new home loans has climbed 70% since 2020
Equifax has flagged a significant increase in the value of new mortgages since the beginning of last year.

New data released by Equifax has shown that the value of new mortgages in Australia surged 70 per cent between January 2020 and July 2021.
Over the 18-month period, total mortgage limits were found to have increased by $110 billion or 5.6 per cent and average individual mortgage debt moved up 2.7 per cent for an average rise of $13,100.
Equifax reported that there were about 190,000 first home buyers that accounted for 23 per cent of newly opened applications during the period.
“It’s good to see that first home buyer growth has accelerated with encouragement from government stimulus packages,” said Equifax general manager advisory and solutions Kevin James.
“Still, it is worrying that mortgage limits are growing at a rate faster than most home owners’ ability to service their loans.”
Existing home owners who refinanced their loans (35 per cent), upgraded their property (26 per cent) or took out additional financing (16 per cent) accounted for the remainder of newly opened applications.
According to Equifax, first home buyer mortgage limits had climbed higher on the east coast in comparison to the rest of the country.
Loans increased by 12 per cent in Greater Sydney and 14 per cent in the rest of the state, while an increase of 10 per cent was recorded in Greater Melbourne and 9 per cent in outer Victoria.
In Queensland, mortgage sizes grew by 13 per cent in Greater Brisbane and 10 per cent across the rest of the state.
Meanwhile, only single-digit growth was recorded in Western Australia, with a rise of 6 per cent in Greater Perth and 7 per cent in regional areas.
“The size of first home buyer grants are similar across the board; however, disparities in the cost of living and the housing market opportunities in each state continue to be key contributing factors that are pricing mortgage borrowers out of the market, particularly in NSW and Victoria,” said Mr James.
Equifax found that mortgage inquiries had continued to fall from a peak reached in March this year, when inquiries spiked 82 per cent in NSW, 59 per cent in Victoria and 72 per cent across the rest of Australia.
“Mortgage enquiry volumes are a strong indicator of future loan take-outs, and economic developments related to the pandemic will continue to steer borrowers’ sentiment for many months to come,” said Mr James.
“We will be monitoring volumes closely as the economy reopens in states emerging from lockdowns to see how this will flow through to the mortgage market.”
The credit reporting agency also reported that prospective home owners had been taking steps to prepare for a new loan, even before APRA introduced tougher serviceability tests.
The number of Australians holding a credit card in the typical first home owner age group of the under 30s has fallen by 24 per cent since the start of last year compared to a fall of 12 per cent for the 30 to 40 age group.

Loans
Are central banks weighing the economic pain of rate hikes?
The hype around interest rate hikes usually centres around the urgent and fundamental need to alleviate the consequences of inflation – but does this monetary policy do more harm than good? ...Read more

Loans
As rates begin to rise, how much more will new borrowers pay?
Mortgage holders could be asked to pay over $1,000 more per month due to rising interest rates. ...Read more

Loans
New investor home loan commitments climb to a record high
The value of new investor loan commitments reached $11.7 billion in March. ...Read more

Loans
Major banks announce interest rate changes
Following the RBA’s first rate hike in 11 years, the big four banks have tweaked their home loan variable interest rates. ...Read more

Loans
Up to $400bn of fixed rate home loans tipped to roll off into variable rates
A surge of refinancing is anticipated in the next couple of years. ...Read more

Loans
‘Liar loans’ most prevalent at ANZ, survey finds
UBS has identified an increase in factual misstatements coming from ANZ’s mortgage customers. ...Read more

Loans
How will rising rates impact mortgage stress?
Mortgage holders could face thousands of dollars in extra repayment costs per year as a result of impending rate hikes. ...Read more

Loans
Home loan commitments fall from record highs
The fall was driven by a decrease in new loan commitments for owner-occupiers. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Loans
Are central banks weighing the economic pain of rate hikes?
The hype around interest rate hikes usually centres around the urgent and fundamental need to alleviate the consequences of inflation – but does this monetary policy do more harm than good? ...Read more

Loans
As rates begin to rise, how much more will new borrowers pay?
Mortgage holders could be asked to pay over $1,000 more per month due to rising interest rates. ...Read more

Loans
New investor home loan commitments climb to a record high
The value of new investor loan commitments reached $11.7 billion in March. ...Read more

Loans
Major banks announce interest rate changes
Following the RBA’s first rate hike in 11 years, the big four banks have tweaked their home loan variable interest rates. ...Read more

Loans
Up to $400bn of fixed rate home loans tipped to roll off into variable rates
A surge of refinancing is anticipated in the next couple of years. ...Read more

Loans
‘Liar loans’ most prevalent at ANZ, survey finds
UBS has identified an increase in factual misstatements coming from ANZ’s mortgage customers. ...Read more

Loans
How will rising rates impact mortgage stress?
Mortgage holders could face thousands of dollars in extra repayment costs per year as a result of impending rate hikes. ...Read more

Loans
Home loan commitments fall from record highs
The fall was driven by a decrease in new loan commitments for owner-occupiers. ...Read more