Mortgage lending rebounds in WA

Housing finance provider Australian Finance Group says lending for homes in the first quarter of the  2020 financial year in Western Australia has rebounded from record low levels to reach its highest figure since the end of the 2017 fiscal year. 

AFG said the cumulative value lent for mortgages in WA rose 17.9 per cent compared to the quarter prior, to $1.6 billion.

In the third of quarter of 2019, the value figure plunged to $1.32 billion, its lowest level since AFG it began tracking mortgage values in mid-2012.

The latest results means mortgage values have risen for two consecutive quarters for the first time  since the third and fourth quarters of the 2014 financial year.

The average mortgage in WA hit $458,943, the highest on record, and the first time the average value has surpassed $450,000 since the third quarter of the 2016 financial year.

AFG chief executive David Bailey said the rebound has been nation-wide, stemming from record low interest rates.

“With the impact of further cuts by the RBA yet to flow through the market, we anticipate the improved affordability will see positive momentum continue through to the end of the year and into 2020,” he said.

As of September 30, Commonwealth Bank of Australia had a 22.04 per cent of the mortgage market share in WA, followed by its subsidiary Bankwest with 15.45 per cent.

ANZ Banking Group had 10.5 per cent, Westpac had 8.89 per cent, and National Australia Bank rounded off the top five with 6.62 per cent.

Westpac has had its market share nearly halved since March 31, falling from 15.76 per cent.

The other members of the top five have had a similar market share since March 31.