has broken a 21-year record in October, processing a total of $4.7 billion in mortgages.
This record represents a 9% increase from September and a 17% increase from October 2013. It was also the first time the group processed over 10,000 home loans in a single month.
The result was driven by owner-occupier loans. According to AFG
’s data, mortgages processed for investors slipped in every state. The most marked fall was in South Australia, where investment home loans declined from 36.4% to 30.5% month on month. In NSW, investment home loans eased from 49.7% to 48.7%, in QLD from 34.9% to 32.0%, in VIC from 37.2% to 35.9% and in WA from 32.2% to 30.2%. Nationally, investor home loans represent 38.7% of all mortgages processed, down from a peak of 40.3% recorded last month.
, general manager of sales and operations at AGF, said it is good to see the spring season bring owner-occupiers back to the market, although first home buyers are still at record lows.
“October has traditionally been one of the strongest months for property and the spring buying season is well and truly upon us, which is why we’re seeing the increase in owner-occupier loans. Of particular concern, however, is that first home buyer loans have fallen to unprecedented lows in places like New South Wales. If this continues we are going to end up with a whole generation of renters.”
Mortgages processed by AFG
brokers for first home buyers fell from its previous record low of 8.4% of all home loans in September to just 7.2% nationally. First home buyer loans have declined each month since June this year when they represented 10.8% of all home loans processed.
NSW continues to have the fewest first home loan borrowers (2.2%), followed by QLD (4.7%), SA (7.3%), VIC (8.3%) and WA (17.9%). If WA was to be removed from the equation, the average level of first home buying on the eastern seaboard would be around 5% - about a third of the long term average.