Property prices may be falling but that hasn’t stopped Australians taking out larger loans, including first-home buyers.
The average home loan size of owner occupiers in Australia has increased 7.5 per cent since last July to $408,600, according to new ABS housing finance figures.
First-home buyers across the nation aren’t too far behind either as their average home loan was valued at $345,800 – a 7.4 per increase.
First-home buyers in NSW were taking out even more money to secure a property with the average home loan valued at $391,700, an increase of 6.1 per cent since July 2017.
Despite a slight dip from June, Domain Group senior research analyst Dr Nicola Powell said the overall trend of bigger mortgages in a softening marketing was a cause for concern.
“Anybody seasoned in the property market is certainly being more cautious whereas first-home buyers are actually borrowing more as well non-first-home buyers,” Dr Powell said.
“That goes against what you would think in a softening market.”
Dr Powell suggested tighter lending restriction could have filtered out thin, sketchy borrowers out of the market and making way for stronger loan applicants. She said financing higher loan-to-value ratios may be pushing up the average home loan size as a result.
Resource from Domain