Victoria leads the way in loan lodgement volumes: AFG Mortgage Index
The AFG Mortgage Index for the final quarter of 2016 has found Victoria lead the way in lodgement volumes with an increase of 23 percent for the year.
Queensland increased 18 percent over the year and New South Wales 10 percent.
David Bailey, AFG chief operating officer said the remainder of the country tells a different story.
"South Australia remained flat across 2016 and the tough time experienced by the WA economy was evident with a 16 percent drop for the year. The Northern Territory also showed a drop of 18 percent across the year.
“A recent increase to the First Home Owners Grant and a relaxation in eligibility requirements for Keystart lending is clearly an attempt by the WA state government to help lift the housing market and stimulate the construction sector in that state.
“The national LVR for the final quarter of 2016 was 0.7 percent lower than the same period in 2015, which is good news as this means owner equity has improved. Historically the national LVR has been sitting within the 69 percent range across 2015 and 2016.
“Many lenders have been increasing fixed and variable interest rates and have tightened lending to investors. This has encouraged consumers to examine their own situation and we are seeing many pick up the phone to their mortgage broker to determine if their loan is still the most appropriate for their circumstances.
“We expect this trend to continue into the new calendar year as an increasing number of consumers recognise that a mortgage broker is in the unique position of being able to provide a comprehensive view of the alternatives available across lenders and products."