Brokers see rising demand for 'prestige' home loans

Thursday 25 March 2010

Article by Mozo

Australians are becoming increasingly active at the top end of the property market, resulting in a surge in ‘prestige’ home loans in excess of $800,000.

Mortgage broker Loan Market Group has announced that inquiries for loans on prestige properties are up 30 per cent on the same period last year, City News reported.

Chief operating officer Dean Rushton said: "There is strong evidence that the prestige property market is on the move and people are on the hunt for homes worth more than $1 million."

He added that brokers had also seen an increase in loans of more than $3 million.

Mr Rushton said the one percentage point increase in official interest rates during the last six months, from 3.0 per cent to 4.0 per cent, had not deterred people who have wished to compare home loans and upgrade their properties.

Credit Union Australia and AMP Bank recently slashed their variable mortgage interest rates in an attempt to compete with the bigger mortgage lenders.

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