Aussie home loans reach 'record high' in November

Wednesday 02 December 2009

Article by Mozo

People looking to compare low interest home loans may be interested to hear that Australian mortgages hit record highs last month.

According to the Australian Finance Group (AFG), the average home loan throughout the month was $367,000, which represents the highest the organisation has ever recorded.

The group’s Mortgage Index identified a steady rise in the cost of such products since the middle of the year – something reflected in increasing property prices across the country.

While such activity usually denotes a confident market, Mark Hewitt, general manager of sales at AFG, said this optimism is fragile.

He went on to criticise the Reserve Bank of Australia’s decision to increase the official interest rate this week.

"In our view the RBA has gone too far too fast in ratcheting rates back up again. [It] will do nothing to encourage ordinary families back into the property market," he remarked.

Even more people may look to compare home loans when they hear of the results of the BIS Shrapnel Residential Property Prospects report, which suggested rental costs will significantly increase over the coming years.

This article is brought to you by Mozo – Helping you compare home loans
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