July home loans figures show 2% decline

Thursday 10 September 2009

Article by Mozo

The number of low interest home loans customers buying properties has waned, according to new figures.

Australian Bureau of Statistics has released its assessment of the July market with the result that there was a two per cent dip in mortgage approvals during the month.

This represents the first time in ten months there has been a reduced demand for home loans.

However, it also reflects the consumer rush to take advantage of the first homeowner government grant deadline – which was subsequently extended to December – on June 30th, explained Royal Bank of Scotland chief Kieran Davies.

Looking forward, he predicted there would be further falls in home loans applications.

"I would expect that over the next few months you are likely to see further weakness in the owner-occupier space because people were rushing to beat the original June deadline for the increased grant," he commented.

This comes as Claudine Denevue, Professionals Real Estate group agency principal, predicted that the gap in the market caused by the withdrawal of the grant would be filled by people looking for property investments.

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