Aussies still keen on low-interest home loans

Thursday 16 July 2009

Article by Mozo

Although overall debt levels are coming down, the Australian love affair with real estate is continuing unabated.

Such is the claim of the Herald Sun, which reports that home loan borrowing is continuing to rise to near record levels, while credit card and personal loan debt is falling from favour as Aussies look to get a handle on their finances.

Commenting on new figures from the Australian Bureau of Statistics showing a sharp rise in home loan lending, CommSec economist Savanth Sebastian said that consumers were still displaying caution when taking on new debt.

"The improvement in confidence levels and the likelihood that the worst in terms of job losses has passed will prompt consumers to start borrowing and spending more consistently in coming months," he predicted.

Meanwhile, new figures from the Reserve Bank of Australia have suggested that this confidence returned in May as total spending on credit cards and debit cards rose 2.3 per cent over the course of the month.

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