AFG, Australia's largest mortgage broker March/April 2010 figures, confirm that the proportion of investors surged to 60% of all new mortgages.
AFG has over 10% of the total mortgage market (Source: ABS and AFG data) and its data is strongly indicative of ABS statistics published six weeks later.
Property investors accounted for 36.9% of all new mortgages arranged in April alone, the highest such figure AFG has ever recorded. This compares with 10.2% for first home buyers and 16.3% for up-graders with the balance of 36.6% being arranged for refinancing purposes.
Comparing year on year, April 2009 figures for the same period were: 25.4% property investors, 27.7% first home buyers, 16.8% up-graders and 30.1% refinancing.
Clearly the spate of interest rate rises, the uncertainty of the share market fueling a shift by investors to the security and relative safety of residential property has and is affecting the results over the past year. A trend that most industry experts believe will continue well into the future.
AFG General Manager of Sales and Operations Mr. Mark Hewitt says: “Every month we go through this “will they won’t they” raise interest rates debate. It’s hard for ordinary families to make the huge financial decision to buy a property when they don’t know what repayments will be in three months time. Investors are somewhat more insulated. They may have the option of rent rises or negative gearing to protect them.”