Change your region Glen Innes

Mortgage Choice CEO Reaction

<p> The CEO of Australia&rsquo;s largest independently-owned mortgage broker, Mortgage Choice, says the improvement in housing finance commitments reflected in the latest ABS housing finance data* was terrific to observe but may be short lived once the impact of November&rsquo;s rate rises is known.</p> <p> &nbsp;</p> <p> The October 2010 ABS Housing Finance report 5609.0 shows an increase in both the number and value of housing finance commitments for owner-occupied and investment housing finance, with a considerable rise in the number of new dwelling purchases.</p> <p> &nbsp;</p> <p> The total value of dwelling commitments rose by 2.2% from September to October 2010.</p> <p> &nbsp;</p> <p> The number of owner occupied loans increased 1.9%, while the value increased 2.8%.Unfortunately, the number of first home buyer commitments as a percentage of total owner occupied commitments fell from to 15.4% in October from 15.9%.</p> <p> &nbsp;</p> <p> The number of loans for the purchase of new dwellings increased 9.4%, which is a significant gain on the 3.2% and 2% drop experienced during September and August respectively.</p> <p> &nbsp;</p> <p> The value of investment housing &ndash; fixed loans increased 1.1% at the same time the number of loans for the purchase of established dwellings rose by 1.8% and the number of loans for the construction of dwellings rose 0.1%.</p> <p> &nbsp;</p> <p> Mortgage Choice CEO Michael Russell said, &ldquo;It&rsquo;s a relief to see mid spring brought about a second consecutive monthly rise in the value of housing finance commitments. This was perhaps due to a rise in consumer confidence alongside a greater willingness from lenders to lend, particularly for new dwelling purchases. This is great news for many in the residential building industry.&rdquo; &nbsp;</p> <p> &nbsp;</p> <p> &ldquo;Hopefully this level of demand continues in November despite borrowers being caught out with their first official Reserve Bank cash rate increase in six months and consequent lender rate movements.</p> <p> &nbsp;</p> <p> &ldquo;With more rate rises on the cards for 2011 potential borrowers need to research their loan options thoroughly, prepare their savings and loan repayment strategy, and consider the pros and cons of fixing part or all of their loan amount while they are on the property hunt.</p> <p> &nbsp;</p> <p> &ldquo;Also be mindful that some lenders are offering special discounts, which is a positive trend, however this may come at the cost of few loan features and/or higher upfront, ongoing or exit fees. It&rsquo;s important to understand your long-term borrowing needs before you commit to a mortgage.&rdquo;</p>

Advertise on OurPatch

Are you interested in advertising on OurPatch? Know what your options are. Request information on your advertising options.

Copyright OurPatch 2007-2019 [2.0] Rails 3.2.11