In November 2020, Australia saw its highest number of owner occupier first home buyer loan commitments since October 2009, according to the Australian Bureau of Statistics (ABS).
The number of owner occupier first home buyer loan commitments was found to have risen 3.1 per cent in November 2020 to reach 13,905 (seasonally adjusted) - a rise of 42.5 per cent since the start of 2020.
According to the ABS, this is the highest level of owner occupier first home buyer loan commitments since the commonwealth government temporarily tripled the first home owner grant as part of its economic stimulus package in response to the global financial crisis (GFC), spurring rapid growth.
November 2020 also saw record highs set for both the total value of new loan commitments for housing (up 5.6 per cent to $24 billion, seasonally adjusted, a 23.7 per cent increase on November 2019), and for the value of owner occupier home loan commitments (up 5.5 per cent to $18.3 billion in November 2020, 31.4 per cent higher than November 2019).
Victoria was noted for experiencing a sharp 19.6 per cent surge in owner occupier home loan commitments in November 2020, following an easing of COVID-19 restrictions.
ABS head of Finance and Wealth, Amanda Seneviratne, said that Australia’s continuing growth in new home loan commitments could be partially attributed to “federal and state government incentives and ongoing low interest rates.”