Australians are flooding into the property market in record numbers despite the country suffering its worst recession in almost 90 years. The Australian Bureau of Statistics has released data showing new home loans in August recorded their largest monthly increase since records began in 2002.
The value of new home loans jumped 12.6% in August, following an 8.8% rise in July, with first- home buyers the leading cohort.
“First home buyers are flooding into the market, having responded to government support measures,” Canstar finance expert Steve Mickenbecker says.
“The number of new loan commitments in August for FHBs has hit the highest level since October 2009.” More than 12,000 first-home buyers settled home loans in August – up from 10,451 in July and 8,961 in August 2019.
Their surge in interest comes after the Federal Government announced ‘HomeBuilder’ grants worth $25,000 in June and an extra 10,000 places on the First Home Loan Deposit Scheme (FHLDS) in October.
The FHLDS allows Australians to avoid paying lenders mortgage insurance when buying property with deposits as low as 5%.