Master Builders Deputy CEO, Paul Bidwell said approvals for loans to purchase residential land rose a massive 64.6 per cent over the month, while the stats show further significant recovery in the number of people securing a new home loan during June.

The total number of housing loan commitments also had a massive 32 per cent surge.

“Approvals for owner-occupier home loans were also strong, with a 33.6 per cent jump, while the increase in loans to investors was more modest at 26.4 per cent,” said Mr Bidwell.

At a Glance:

• Loan commitments for residential land rose 64.6 per cent and housing 32 per cent
• Approvals for owner-occupier home loans jumped 33.6 per cent
• Increase in investor loans was 26.4 per cent

“The easing of COVID-19 restrictions has also resulted in consumers having renewed confidence not only to visit display homes but move ahead with building work and sign contracts.

“With the Queensland Government only releasing details of the application process and full set of eligibility requirements at the end of July, it’s anticipated that this is just the beginning.”

However, Mr Bidwell said there are concerns that an unprecedented level of contracts is pending finance approval and will fall over and not convert to construction work on the ground, due to HomeBuilder rules stopping lenders from considering the grant when determining loan eligibility.

This in turn means new home buyers and those looking to build or renovate are unable to use the $25K grant as part of their deposit.

“This technicality could mean the grant has no benefit for many new home buyers and can only be utilised by those who can already afford to build without the assistance," said Mr Bidwell.

“As we understand, this wasn’t the original intention of the grant when announced by the federal government and we’re currently working with government and lenders to get this changed.

“What we don’t want to see is signed building contracts falling over when owners fail to secure finance.

“There have been calls this week to extend the grant beyond 31 December 2020 as part of the federal government’s 6 October budget.

"With the pandemic continuing, we believe there’s a strong case for extending the grant."

Mr Bidwell said this will ensure that the cliff face the industry is facing isn’t just delayed by six months; it’s given more time to do its job.

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