$500,000 for the Average NSW Home Loan
For the first time, the average amount for a home loan in NSW is now over $500,000. Australian Finance Group (AFG), one of the country’s biggest mortgage brokers, claimed that this is a result of increasing property prices and low interest rates.
According to AFG, the median new home loan in NSW in August was $505,000. This represented a rise of 6% from the average mortgage during the same time in 2012.
The housing market has been strong all year, and this is reflected by the number of mortgages held with banks and other institutions also rising.
In Sydney auction clearance rates have been at around 80% over the last few months, and in many suburbs prices are at their highest levels. According to figures from RP Data, Sydney is on track to record growth of approximately 10% for the year.
Following the recent decision of the Reserve Bank of Australia to reduce cash rates to record lows, there has been even more interest in real estate, particularly for investors.
Of all the people in NSW who had mortgages approved last month, 49.5% were investors. Using the equity that they have in an existing property, investors are capitalising on the low interest rates and purchasing one or more investment properties.