Increased Lending On Homes

Newcastle Herald

Saturday October 11, 2003

HOME loans bounced back in August, driven by increasing numbers of home owners refinancing properties, according to figures out yesterday.

The Australian Bureau of Statistics said the number of home loans taken out during the month rose 2.1per cent, following a slight fall in July. The bureau said loans to buy new homes dropped 5per cent, the biggest fall since December, allowing for seasonal factors.

Borrowing to build homes rose 0.1per cent, while loans to buy established homes increased 2.6per cent.

Refinancing rose 5.2per cent and the proportion of people locking in interest rates on fixed-term loans jumped 8.6per cent, as home buyers gave up hope of lower interest rates.

The bureau said the average loan value rose to $184,000 from $182,500 in July and total lending rose to $10.92billion, from $10.43billion.

The proportion of loans to first-home buyers increased slightly to 13.8per cent. AAP

© 2003 Newcastle Herald

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