Could growing number of millionaires have impact on home loans?

Friday 24 June 2011

Article by Mozo

More Aussies could have the financial clout to compare home loan rates and buy a new abode, as a study showed an increasing number of millionaires are living in the country.

Australia's home loan market could benefit from rising number of millionaires

Figures compiled by Capgemini and Merrill Lynch have shown there was an 11.1 per cent rise in the number of Australians becoming millionaires in 2010 compared to the previous year, ABC News reports.

Nearly 193,000 people were found to possess $1 million or more, while the combined wealth of these rich people was said to be $550 billion – a 12.1 per cent increase on 2009.

The real estate market was highlighted by Dorus van den Biezenbos from Capgemini Australia as a key factor behind the growing number of high-rollers, while strong gross domestic product figures also contributed.

In fact, the Asia-Pacific region was found to have around 200,000 more millionaires than Europe.

However, the majority of the population in Australia – who have not got millions to fall back on – were recently advised by Smartmove mortgage adviser Simon Orbell to keep their credit files clean to boost their chances of securing home loans, the Daily Telegraph reports.

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