Home loans applications on the increase

More and more Australians are signing up for home loans, it has been revealed.

According to a survey conducted by Veda Advantage, there has been a 28 per cent increase in the number of people applying for mortgages year-on-year until the end of June 2009.

This is the highest figure recorded by the company in five years.

Nearly 75 per cent of the people looking to compare home loans and taking out mortgages were over the age of 31, the figures pointed out.

Meanwhile, there was a 20 per cent drop in the uptake of credit cards and personal loans.

This reflects a cautious outlook on the part of Australian consumers, according to the firm.

Commenting on the results, Russell Evans, Veda Advantage general manager, said: "This continuing high level of demand is a response to high levels of housing affordability, low interest rates and the federal government’s first home buyers’ grant."

The national interest rate is expected to rise from November, according to predictions made by chief economist at the National Australia Bank Alan Oster.

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