Upgraders and investors drive rise in mortgage approvals: RBA chart pack

Home loan approvals are trending up strongly driven by owner-occupier upgrading into new homes and investor demand for mortgage finance, the latest RBA chart pack shows.

However, first home-buyer demand for mortgages remains low and has shown no signs of lifting since the start of 2013.

The graph below also shows the impact the first-home buyer boost had in dragging forward demand in 2009.

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The scheme ran from October 2008 to December 2009.

Up until September 30, 2009, it provided first-time buyers with an extra $7,000 to purchase an existing home and $14,000 if they purchased a newly constructed home or built a new home. The scheme operated in tandem with the $7,000 grant no longer available or being phased out in NSW, Queensland, Victoria, South Australia, Tasmania and the ACT.

Between October 2009 and December 2009, the first-home owner’s boost was halved, with $3,500 available for the purchase of established homes and $7,000 for the purchase of new homes.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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