In the wake of recent problems facing mums and dads' accessing new residential land developments, comes further information that investors are taking an increasing role in the Western Australian property market.
In the wake of recent problems facing 'mums and dads' accessing new residential land developments, comes further information that investors are taking an increasing role in the Western Australian property market.
Research shows that almost half of new mortgages taken out in WA in May were advanced to investors.
This has contributed to a rise in local mortgage sizes as well as the national average, according to figures just released by Australian Finance Group.
AFG's latest Mortgage Index shows that:
- The highest ever proportion of mortgages advanced to investors was recorded for Western Australia in May, when 48 per cent of new loans were for investment purposes;
- Increasing mortgage sizes are being driven largely by WA, where the average new mortgage rose to $319, 000 and Queensland, where it increased to $287,000;
- In WA, the average mortgage has risen by 35% in the past year;
- Nationally, for the first time more than 20 per cent of new borrowers are choosing Fixed interest rate mortgages. This confirms the trend of caution noted last month with larger numbers of borrowers opting for the safer haven of Fixed rates as protection against potential future rate rises;
- Collectively, these figures suggest that May's interest rate rise has had little immediate impact on the country's mortgage market, with banks having discounted their rates to increase market share.
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HALF OF NEW WA MORTGAGES GO TO INVESTORS: LATEST FIGURES
Investors are scrambling for a stake in the WA property boom, driving both local mortgage sizes as well as the national average, according to figures just released by AFG, the nation's biggest mortgage broker.
AFG's latest Mortgage Index shows that:
- The highest ever proportion of mortgages advanced to investors was recorded for Western Australia in May, when 48% of new loans were for investment purposes;
- Increasing mortgage sizes are being driven largely by Western Australia, where the average new mortgage rose to $319k and Queensland, where it increased to $287k. In Western Australia, the average mortgage has risen by 35% in the past year;
- Nationally, for the first time more than 20% of new borrowers are choosing Fixed interest rate mortgages. This confirms the trend of caution noted last month with larger numbers of borrowers opting for the safer haven of Fixed rates as protection against potential future rate rises;
- As a company, AFG reported its best month ever in May 2006, with residential mortgage sales of over $2.6 billion.
- Collectively, these figures suggest that May's interest rate rise has had little immediate impact on the country's mortgage market, with banks having discounted their rates to increase market share.
Kevin Matthews, Executive Director of AFG says: "We had our best month ever in May, so there's no sign at all that the rate rise has had an immediate impact on our business. But we should treat the average mortgage figure of $300k with some caution. AFG is tilted to the upper end of the market, in terms of both our customers and our brokers. While $300k may not be a definitive figure, it is strongly indicative of what the market is doing, especially with the continuing resource boom driving WA."
AFG is Australia's largest mortgage broker and has 10.4% of the WA market (Source: ABS and AFG statistics).
