Record home lending to last into 2021: prediction

by Madison Utley18 Nov 2020

A mortgage broker has predicted the robust lending figures evidenced in recent months will hold into 2021, pointing to the record home loan applications and settlements the group achieved in October as proof the home loan market has “never been stronger”.

Aussie reported more than $1.6bn in settled home loans over the month, following on from the record lodgements recorded in the first quarter to 30 September and the 32,000 loans settled for the calendar year to date.

Now, the group is forecasting a settlement value of $18.0bn for FY21.

The combination of the record low cash rate and traditionally strong spring selling season have helped to settle any earlier COVID-triggered unrest in the property market felt earlier in the year, according to Aussie CEO James Symond.

“We’ve never experienced pent up demand like this,” Symond said.

“The lowest interest rates on record and ongoing local government funding schemes are attracting buyers who have been able to save money as their travel and social spending were restrained during COVID.

“We are seeing confidence of consumers return. I believe the comeback for the Australian property market has certainly begun.”

To Symond, it is clear a “perfect storm” of positive growth drivers will sustain this property market momentum into 2021 and beyond.

“For first home buyers wanting to get a foot on the property ladder, or established home buyers wanting to upgrade, or investors looking to hold onto a property, housing affordability has never been cheaper than it is today,” he said. 

“Buyers are rushing to take advantage of these conditions, and homeowners are seeing some of the most attractive rates lenders have ever offered; so many of our brokers are working around the clock to help customers with their applications."

Symond conceded that many challenges remain for the Australian economy, but emphasised the many reasons to be optimistic about the Australian property market – “particularly in the long term”.