Home loan applications rise 2.3% in June quarter

Thursday 29 July 2010

Article by Mozo

Home loan applications rose 2.3 per cent in the June quarter compared to the first quarter of this year, new figures show.

Research by credit agency Veda Advantage also revealed that despite the quarter-on-quarter increase, mortgage applications for the June quarter were down 20.3 per cent on the corresponding period in 2009 when the first home owner grant system was in full swing.

Meanwhile, Veda found that the adverse rate of credit, meaning the rate of credit applications with defaults or bankruptcies, has fallen over the last couple of years.

"Credit quality got better and it’s just started to flatten out,’ Veda spokesman Chris Gration told the AAP.

"Over the last two years households have adjusted to the tougher economic conditions by being more cautious and people with poor credit quality have stayed out of the market.’‘

It suggests Aussie borrowers have become more discerning and could be more inclined to compare home loans as a means of avoiding debt problems. Earlier this week, News Limited reported on a rise in rogue real estate agents and other home loan fraudsters who are targeting recent migrants and the elderly.

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