Home loans lead the charge in war against woe

A bevy of new low-interest home loans may prove to be the key weapon in the war against the current economic misery, Westpac has suggested.

Figures from the Australian Bureau of Statistics have shown that the number of home loans granted in October rose to 48,299, up 1.3 per cent on the month previous.

According to Australian Associated Press, Westpac commented that while the rise wasn’t the biggest, it could herald the start of an economic turnaround.

“This will act to support house prices and trigger a recovery in new dwelling construction,” the company said.

It added that the new abundance of low-interest home loans have largely been enabled by the Reserve Bank’s rate-slashing flurry seen since September, with 300 basis points cut to date.

Following the rate cuts, lenders have been quick to pass it on with lower interest home loans, with both Commonwealth and NAB passing on the full reduction on their home loans.ADNFCR-1761-ID-18925353-ADNFCR