Housing Investors Continue to Get Back From the Property Market
Australian Finance Group carries out the survey, and calculated the mortage index that shows that the investor lending in property market continues to drop.
The mortgage index was calculated for the final quarter of 2015, from which it can be seen that the investor lending that was previously at 40% is now dropped to 31%. Whereas, the loans to owner occupiers got an uplift.
As per the report the figures calculated were as follows:
- In New South Wales, the average mortgage borrowings was found to be $583,708, coming out be the highest.
- Next comes Victoria, with an average mortgage borrowings of $465,199.
- After that in Western Australia average mortgage borrowings were $444,218 wheras in Northern Territory, the borrowings were $423,033.
- Along with it South Australia and Queensland got the low level borrowing of $374,407 and $393,384 respectively.
AFG general manager sales and operations Mark Hewitt said,”The final quarter of 2015 showed there had been an adjustment in the market. A long period of low interest rates had many people predicting a rise in interest rates this year which resulted in increased numbers of borrowers fixing their rates.”
He further added, “As the year drew to a close fixed rate lending lifted by nearly 3 per cent to 14.2% of the product mix”.