Home Loan Approval Rates at Highest Level This Year

Posted on November 20th, 2012 · Posted in News

The property market is showing some signs of picking up pace as the key spring selling period gathers momentum with home loan approvals registering their biggest rise in almost a year.

Official data shows the number of home loans for owner occupiers, approved, in August rose 1.8% – its highest level this year.

The surge in borrowing demand after the recent run of interest rate cuts has exceeded economists’ forecasts.

Since the start of the year, the Reserve Bank has lowered interest rates by 1% to 3.25% but most lenders have withheld passing through the full benefits to borrowers.

The ABS report shows the value of total housing finance rose 0.6% in August.  The biggest rise in the mainland states were in Queensland, New South Wales and Western Australia.

In Victoria, the market remains subdued with owner occupier’s finance commitment down 1.2%.

National Australia Bank remains the industry leader with its lowest rate 6.58% variable rate, while Westpac is the highest at 6.71%. ANZ and CBA are tied on 6.60%.

Only seven lenders out of more than 100 have passed on the full 25 points.

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