Home loan approvals on the up
The Australian Bureau of Statistics (ABS) has revealed home loan approvals have grown by 11 percent in the first quarter (Q1) of 2014. Record low interest rates and strong real estate sales were the catalyst for the highest Q1 growth since 2002. The strong rebound shows consumer confidence is alive and kicking.
Low interest rates becomes the key to maintaining the same levels of approvals and purchasing and the Reserve Bank of Australia (RBA) has indicated rates are likely to stay where they are for some time to come. By setting a rate-hold mentality, homeowners and buyers, like you, will remain confident repayments will stay low and money can be saved in interest charges.
New South Wales and Queensland led the way for growth at 15 percent, with South Australia and Western Australia both growing nine percent and Victoria six percent. Nationally, there was particularly strong growth in March for new home purchases, up 13 percent from February and refinancing of existing dwellings, up 12 percent for the same period.
Even without cash rate movements by the RBA, we know competition between lenders is high and they’re attracting new customers. It’s a great time to review your home loan and make sure you’re on the most competitive loan you can be. If you’re thinking of buying or refinancing, call me today to see how I can save you time and money.