The average value of a new mortgage in Australia has risen to its highest level as property investors return to the market, the country’s biggest mortgage broker says.
The average new mortgage lodged in Australia rose to A$354,137 ($442,813) in July, eclipsing the previous record of A$353,223 in October last year, according to mortgage broker AFG. “As every week goes by we’re seeing growing signs of confidence in the property market,” general manager of sales and operations Mark Hewitt said. “Recent reports of house price increases are stimulating the market as a whole and encouraging investors.”
The data showed 30 per cent of mortgages were arranged for investors, rising from a low of 24.5 per cent in March, whereas new home buyers made up 19 per cent of the mortgage market in July, a proportion that had fallen from 28 per cent in March. Also, the proportion of fixed rate mortgages fell to 5 per cent from 8.3 per cent in June. – AAP
