NSW mortgage size passes $600,000 average: Pete Wargent

NSW mortgage size passes $600,000 average: Pete Wargent
NSW mortgage size passes $600,000 average: Pete Wargent
GUEST OBSERVER
 
Australian Finance Group (AFG) released its index for the final quarter of 2016, reporting more than $15 billion in mortgage lodgement volume.

The index, which is not seasonally adjusted, rose by 9.9 percent over the year to December.

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NSW mortgage size passes 0,000 average: Pete Wargent

Nationally, the average mortgage size of $488,875 was up from $475,083 from the prior year.

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NSW mortgage size passes 0,000 average: Pete Wargent

"Tale of two seaboards"
 
Over the year there was strong growth in lodgement volumes in both New South Wales (up 10 per cent) and Queensland (18 per cent), but the real driver of growth was Victoria with a substantial 23 percent rise. 

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NSW mortgage size passes 0,000 average: Pete Wargent


Offsetting this, investors have backed off from Western Australia and the Northern Territory.

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NSW mortgage size passes 0,000 average: Pete Wargent

In the December quarter the average mortgage size scaled fresh heights in each of the three most populous states. 
 

NSW mortgage size passes 0,000 average: Pete Wargent

Investor rebound

Finally, the share of AFG's market relating to investors ticked back up to 34 percent.

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NSW mortgage size passes 0,000 average: Pete Wargent
The wrap
 
While activity in South Australia was flat, the weakness of the WA market in 2016 was evident, with the recent introduction of a new first home owners grant in the state designed to combat this. 
 
Loan to value ratios across the year were fairly consistent at around 69 percent, about 0.7 percent lower than in 2015.
 
Over the year non-major lenders have been pinching market share away from the main players, a trend that AFG expects to continue into the new year as consumers increasingly recognise the potential benefits of using a broker.
 
PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger

Pete Wargent

Pete Wargent

Pete Wargent is the co-founder of BuyersBuyers.com.au, offering affordable homebuying assistance to all Australians, and a best-selling author and blogger.

Tags: 
Mortgages Afg

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