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By: Staff Reporter
Despite the recent drop in owner occupier housing commitments across Australia, one mortgage brokerage has recorded a surge in investor activity.
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Loan Market Group yesterday announced that demand for housing finance for investment property and people wishing to upgrade their homes had doubled over the past 12 months.
The brokerage’s chief operating officer Dean Rushton said the home finance market had shifted dramatically over the past year.
“A year ago first home buyers were dominating the market due to boosted government grants,” Mr Rushton said.
“But enquiries from first home buyers have fallen dramatically from 57 per cent of our business in April last year to just 16 per cent now. This is due largely to the expanded First Home Owner Grant scheme returning to its traditional level at the end of last year.
“While first home buyers are nowhere near as prominent as they were a year ago, it’s a different story for investors and upgraders.
"Enquiries from investors have grown from six per cent to 12 per cent and enquiries from owner occupiers about refinancing or purchasing another home have grown from 31 per cent to 58 per cent.”
Mr Rushton said tougher lending criteria by the major banks had not affected property upgraders and investors to the same extent as first home buyers.
“People with large amounts of equity in their homes have a track record and are therefore viewed more favourably by lenders,” he said.
