Demand for home loans among FTBs 'is returning'
Article by Mozo
The demand for new home loans among first-time buyers (FTBs) is starting to return, new figures suggest.
According to a QBE LMI report, the influx of new home loans customers is vital for the country's property market because it encourages "upgraders" to enter the market, reports News Limited.
Ian Graham, chief executive of the firm that compiled the study, asserted that healthy demand from FTBs drives demand for new residences among those already on the property ladder.
"First-home buyers' demand for new whitegoods, furniture and so forth also results in a healthy economic stimulus," he asserted.
The report suggested that up to 60,000 FTBs have entered the market recently following the unveiling of incentives to encourage purchases after the global financial crisis.
Earlier this month, data released by the Australian Bureau of Statistics showed that the number of people approved for home loans rose by 2.2 per cent month-on-month in September.
Have a question about home loans? Ask the money gurus at Mozo Answers.