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The number of mortgages being sold to first home buyers has fallen by 30.6 per cent in three months, the latest AFG Mortgage Index has revealed.
According to the Index, 19.5 per cent of all mortgages written in June were to first home buyers, compared to 28.1 per cent three months earlier.
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LVRs, expressed as a percentage of property values, fell to 66.9 per cent, down from 73.7 per cent in April.
This confirms the trend that first home buyers now have much bigger deposits, AFG said.
The company’s general manager of sales and operations Mark Hewitt said despite the decline in first home owner activity, there are still a number of signs to suggest the mortgage market is stabilising.
Investor confidence grew in June with the proportion of loans to investors rising to 29.0 per cent from a low of 24.5 per cent in March.
“First home buying, investor activity and LVRs are all reverting towards the long term trend after a period of turmoil,” Mr Hewitt said.
“While confidence is creeping back, the real concern is that over 90% of all home loans are controlled by just four institutions. The lack of consumer choice, and the implications that has for future pricing, is a real obstacle to the functioning of a healthy mortgage market.”
