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Home loan pre-approvals surge to new heights
23/09/2020
- 4 min read
Falling property prices haven’t been enough to shake confidence in the market as mortgage pre-approvals skyrocket to an all time high, according to the largest mortgage broker in Australia.
Home loan pre-approvals jumped by 71 per cent from January to August this year, Aussie Home Loans said, at a time when major property markets are shrinking around the country.
August application numbers reached an all time high -- and it did so by doubling the previous record set in 2018, James Symond said, chief executive of Aussie Home Loans.
"The pent-up demand potentially influenced by lockdowns, lower supply levels, and the savings from the lack of travel and social spending means a portion of the market are ready to act on their property dreams," he said.
“There’s a strong indication that people are giving themselves as much certainty as they can in an uncertain environment – and property seems to be where Australians seek that certainty to ‘bank on’ their future.”
The strong pre-approval numbers could be a sign of life returning to normal, Mr Symond said, as the Spring property season tends to outperform others.
“There’s a good chance that this year will not be any different given the record number of pre-approvals ahead of the spring property season,” he said. |
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