Home loan approvals on the up, official figures show

The number of Aussies securing a home loan in August was up by 1.8 per cent on a month-by-month basis.

New figures provided by the Australian Bureau of Statistics have restored a little bit of optimism in the country's struggling property sector.

A total of 45,821 mortgages were issued during the month, which is the highest so far this year.

The Reserve Bank of Australia has lowered the national cash rate to just 3.25 per cent and experts feel the generous cuts made since the end of 2011 are the main reason behind the upturn.

Competition in the mortgage sector has intensified recently and Aussies now have far more choice.

Indeed, a recent study conducted by AFG showed that a lot of people are now turning to the country's smaller lenders when looking for a new home.

Speaking to the Australian Associated Press, St George economist Janu Chan said that owner-occupiers in particular are returning to the property sector.

"That's certainly encouraging for the housing market and is also in line with the stabilisation in house prices that we've seen in many states," she was quoted as saying.

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