Australian borrowers were more likely to apply for a home loan than any other type of financing during the September quarter, according to the latest Equifax market report.
Mortgage demand remained robust during the third quarter of the year, with home loan applications increasing 16.3% from the previous year, offsetting the general trend of decline. decline in consumer credit demand which fell 29.6% during the quarter.
The decline in aggregate demand for credit has been driven by the substantial drop in appetite for personal loans and the continued downward trend in credit card financing, largely due to the COVID lockdown -19 in Victoria.
However, even in Victoria, local demand for housing finance remained high – increasing 1.3% in the quarter.
In fact, all states and territories reported growth in mortgage application volume during the quarter. Western Australia leads the pack with a 48.3% increase in mortgage applications, followed by ACT, up 31.6%.
According to the report, growth in mortgage demand may indicate further strengthening in homebuyer activity in the next quarter.
Kevin James, Managing Director of Consulting and Solutions at Equifax, explained that government stimulus and support measures such as JobKeeper payments have helped cushion the economic toll of the COVID-19 pandemic, particularly for consumers who would otherwise depend on credit.
"This is especially evident when looking at the volume of personal loan applications, which has fallen by around 30% for two consecutive quarters," James said.
"As government stimulus begins to pull back, we anticipate personal lending may experience a recovery, particularly among high-risk borrowers who may not be eligible for other types of financing. . "
The table below shows the growth of each funding segment during the quarter in all states and territories:
Top suburbs:
sunshine
,
Marrickville
,
artarmon
,
Midland
,
thebarton
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