Home loans up by 13%

The average WA home loan jumped by $14,100 or 13 per cent over the past year prompting warnings that homebuyers should exercise caution when borrowing money.

Australian Bureau of Statistics figures show that in October 1999 the average borrowing was $118,700.

This compares with average borrowings of $104,600 in October 1998.

Residential Mortgage Services managing director John Bignell said new home buyers should be wary of higher interest rates over the next year.