World News – UA – New loan data yields unexpected results

John Symond retires after almost 29 years as former owner, CEO and chairman of the group

New home loans not only rose 59% in September, but up 255% year on year despite concerns the market weakens in the face of COVID-19, new data shows published by the Australian Bureau of Statistics (ABS)

The value of new housing loan commitments during the month increased by $ 1.2 billion, as the value of external refinancing stood at $ 13 billion – up 15% from the previous month. previous month

According to Steve Mickenbecker, chief financial officer of the Canstar group, the resilience of the mortgage market throughout the pandemic was unexpected and non-existent in the forecasts made in the early days of COVID-19

« What surprised this month was our 255% lead in September 2019 for total new loans and 321% for refinancing, » Mickenbecker said

« Even more surprising is the 45% yoy growth in the number of First Time Buyers (FHB), which suggests that the fear of missing out on an opportunity is back »

ABS data showed that the value of FHB owner-occupant loan commitments increased 56% from the previous month, while the number of commitments increased by 60%; Homeowner FHB loan commitments represent 345% of all owner-occupant commitments, excluding refinancing

« Borrowers are putting aside the growing international pandemic crisis and still high levels of domestic support and willingly let the first signs of recovery in Australia guide their thinking, » he said

« Construction loans have seen a remarkable increase and are proof that the government’s HomeBuilder and low interest rates are helping to boost spending in the real estate market, » he added

ABS data shows that the value of homeowner construction loans rose a « staggering » 253% in September, to $ 2.6 billion

However, while the data for the month was largely positive, Mickenbecker noted that the numbers ultimately reflected the full impact of the Victorian shutdown

« September loan numbers fell in line with previous months except for Victoria where the second shutdown eventually turned into numbers, » he said

« Provided Australia defies a new wave of COVID-19, there is cause for optimism that the housing stimulus will keep lending above 2019 levels over the coming months The test will come while JobKeeper ends « 

Mickenbecker continued to draw attention to another market ‘weak spot’ – investment loans – up just 42% year-on-year from the 338% jump highlighted by owner-occupants

« Investors are facing high vacancy rates and potentially expect housing prices to drop when JobKeeper goes out next year. Investors will want to see less uncertainty before returning to the market, » a he declared

Mortgage, finance, Australian Bureau of Statistics, financial services, owner occupation, interest rates