Login
ISCOVER
By: Staff Reporter
Loan sizes are on the rise, according to Loan Market Group.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
New data from the brokerage has revealed that the number of home buyers wishing to borrow more than $500,000 has grown by 13 per cent.
According Loan Market Group’s chief operating officer, the increase occurred in all mainland state capitals with Melbourne having the biggest rise of 21 per cent.
Mr Rushton said analysis provided for Loan Market by property information service PriceFinder found residential real estate price increases only partially contributed to the significant shift in loan size.
“A higher proportion of first home buyer activity during 2009 due to the boosted Government First Home Owner Grant and a more subdued top end market were factors which resulted in pushing people into higher home price and loan brackets,” he said.
“The Melbourne housing market experienced the biggest shift with a 21 per cent increase in people taking loans of more than $500,000 over the 12 months to July, 2010.”
Mr Rushton said the Brisbane region had an 18 per cent increase in home loans of more than $500,000.
He said in Sydney there was a 16 per cent rise while there was only a seven per cent shift in Adelaide and four per cent in Perth.
“Sydney has the lowest percentage of loans below $500,000 at 28 per cent while Adelaide has the highest at 66 per cent and appears to be one of Australia’s most affordable cities to buy a home,” he said.
