Mortgage Choice's CEO Susan Mitchell has welcomed the news of an increase in demand for housing finance, recently released by the Australian Bureau of Statistics.

“The ABS’ housing finance data for the month of June comes as welcome news following the large fall recorded in May and was likely the result of a renewed sense of optimism from buyers who were seeing the first signs of an economic recovery," said Ms Mitchell.

At a Glance:

• Total housing finance, excluding refinancing, rose 6.2 per cent
• Value of housing finance to owner-occupiers, excluding refinancing, rose 5.5 per cent ot $13 billion
• Value of housing finance to investors grew over the month, recording an 8.1 per cent

"That being said, the second wave of the pandemic in Victoria will now threaten the extent of this recovery in the months to come.”

The ABS data revealed the value of total housing finance, excluding refinancing, rose 6.2 per cent and the value of housing finance to owner-occupiers, excluding refinancing, rose 5.5 per cent over June to $13 billion.

The ABS data also revealed a 6.2 per cent increase in the number of loans to first home buyers over the month.

“The data also revealed that the value of housing finance to investors grew over the month, recording an 8.1 per cent rise," said Ms Mitchell.

"Demand for investment loans is down year on year, and is unlikely to strengthen in the short term given the headwinds facing the housing rental market at present.

“The outlook for home loan demand is uncertain at this stage given weak consumer sentiment, a deteriorating labour market and the renewed lockdown in Melbourne.

"There are however many opportunities for those in a position to apply for a home loan to access an extremely competitive market, with attractive offers and interest rates encouraging borrowers to refinance their home loans at unprecedented rates.

"Federal and state government incentives are also supporting first time buyers get their foot into the property market."

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Mark Bevan, Head of Sales, Joust

Joust's Head of Sales Mark Bevan said enquiry for home loans was strong.

"At Joust, we continue to see strong levels of enquiry for home loans - particularly customers looking to refinance to a lender with a lower interest rate or lower fees," said Mr Bevan.

"Banks are clearly experiencing a lot of demand for adjustment to repayment terms due to the pandemic and while the data is pointing to increased demand for home loans,

the volume of overall home loan enquiry activity is leading to longer approval and settlement times for new loans."

Find out more about housing finance numbers here.

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