Key Highlights:

Loan Boom in Australia: Western Australia and Victoria • Western Australia and Victoria are driving the expansion of owner-occupied loans, with yearly increases of 7% and 6% respectively. • Mortgage Insights reports an 8.8% annual increase in the average interest rate on a new house loan in Australia. • Buyer activity is shifting from Western states to Eastern states. • Investor loans value has increased by 32% year-on-year, with Western Australia leading the charge with a 43% rise in loans. • Victoria is the preferred choice for first-time homebuyers (FHB), accounting for 31% of all FHB loans. • Internal and external refinancing have increased, with a 14% increase in internal refinancing and 24% increase in external refinancing. • Interest rates remain stable, with variable interest rates for owner-occupied loans remaining stable. • The cost of new houses has risen by 39% over the past five years, three times faster than the growth in earnings. • ASK Financials offers expert advice, tailored solutions, and competitive rates to capitalise on the loan boom.

The most recent research from Mortgage Insights indicates that the average interest rate on a new house loan in Australia has increased to $636,208, representing an increase of 8.8% on an annual basis.

The expansion of owner-occupied loans is being driven by Western Australia and Victoria, with these two states seeing yearly increases of 7% and 6%, respectively.

Currently, we are seeing a change in buyer activity, which is migrating from the Western states to the Eastern states. 

Growth in the lending sector is fueled by investors.

The value of investor loans has increased by 32% year-on-year, with Western Australia leading the charge with a 43% rise in the number of loans. The next state to have an increase was Queensland, which had a 21% increase, while South Australia witnessed a 14% increase, which is comparable to the national average of 17%.

For those who are purchasing their first home, Victoria is the best option.

More and more first-time homebuyers (FHB) are moving to Victoria, which now accounts for 31% of all FHB loans throughout the country, representing an annual increase of 14%.

In comparison to Sydney, the property prices in Victoria are more cheap, and the city also has a robust housing supply, which makes it appealing to those who are looking to purchase their first home.

Next in line is New South Wales, which accounts for 25% of FHB loans, followed by Queensland, which accounts for 19%.

As new loans increase, refinancing becomes less common.

An increase of 14% has been seen in internal refinancing during the last year, while an increase of 24% has been seen in external refinancing. The number of new loans has surpassed the number of refinancing loans for the first time since December 2022.

Because there are less incentives to switch lenders, this is a reflection of the fact that more Australians are joining the property market, and current borrowers are renewing their mortgages less often.

The rates of interest have not changed.

Despite the fact that there has been no change in the variable interest rates for owner-occupied loans, interest rates have remained reasonably stable. Fixed interest rates, on the other hand, saw swings, with investor loan rates seeing a modest increase.

It is becoming more clear that lenders are indicating a decreased interest in providing investors with stable interest rates. 

Wages are out of step with growing housing expenses.

The rising discrepancy between salary growth and house expenses was brought to light by a significant discovery that was published on Money.com.au.

The cost of new houses has climbed by 39% over the previous five years, which is approximately three times faster than the growth in earnings. Earnings have only increased by 15% over the past five years.

Take Advantage of the Loan Boom with ASK Financials

With Western Australia and Victoria driving the surge in owner-occupied and investor loans, now is the perfect time to capitalise on these opportunities. Whether you’re a first-time homebuyer in Victoria or an investor looking to benefit from the rising loan values across the country, ASK Financials is here to guide you through the process. Get expert advice, tailored solutions, and competitive rates—contact ASK Financials today to secure your future in Australia’s thriving property market!

To know more on your loan options, book a discovery call now.