The first recession in 30 years has done little to dampen the spirits of home loan borrowers.
Mortgage lenders have seen a 13.6 per cent growth in the number of owner-occupiers taking out home loans in August, the latest Australian Bureau of Statistics (ABS) data showed. Home buyers secured more than $16 billion worth of mortgages for more than 12,000 properties over the month.
This is a jump of about 30 per cent when compared with the same time last year.
First home buyers came out in droves, securing about $5 billion of mortgages, making up about 30 per cent of new owner-occupier loans in August.
The value of first home buyer new loan commitments surged by about 9 per cent over the month, and a staggering 38 per cent since August 2019.
The surge in new home loans comes off the back of record-low interest rates and falling property prices, possibly encouraging buyers to take advantage of favourable market conditions.
First home buyers may also be tapping into government incentives, including the First Home Loan Deposit Scheme (FHLDS), which was updated in the federal budget with higher property price caps and another 10,000 spots.
While the Reserve Bank of Australia did not cut the cash rate this month, speculation is growing that Australia could be in for a Melbourne Cup Day rate reduction in November.
Before then, RateCity has put together a list of some of the top-rated home loans for owner-occupiers in October 2020. The list is based on RateCity’s Real Time Ratings™, which you can read more about on RateCity’s Home Loans Leaderboards page.
(Rankings are correct at the time of publishing. Please note lenders may trade places on the list as interest rates and fees change and RateCity’s tracker reflects these movements.)
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