Home loan demand rises for third consecutive month

Home loan demand rose for the third consecutive month, according to new data.

The Australian Bureau of Statistics’ Housing Finance data showed 56,464 home loans were approved over the month of July, up 2.9% from the previous month.

“July was the third consecutive month of growth for home loan approvals,” Mortgage Choice chief executive officer John Flavell said.

“Historically low interest rates are helping to keep heat in the property market and borrowers are clearly keen to take advantage of this.”  

While the number of home loan approvals rose, the value of dwelling commitments fell 0.9% to $33.03 billion over the month of July.

“This can be attributed to the drop in the value of investment loans approved.

“During the month of July, $12.06 billion in investment loans were approved – down 3.9% from the previous month.

“I am not surprised to see a downwards shift in investment demand," he said.

Changes have made it hard for some investors to qualify for finance.

Looking ahead, Mr Flavell said he expected home loan demand to be strong.

“We are now in spring, which is generally the busiest period for the property market, so I would expect to see home loan demand remain robust."