Mortgage lending

PHOTO: Mortgage lending

Data just released from the Australian Bureau of Statistics (ABS) has revealed that new home lending rose in August, despite the economic impact of COVID-19 including the country’s second largest property market being in lockdown.

The 12.6% increase in the value of new home lending in August is the largest monthly increase since records began in 2002; further, it followed an 8.8% rise in July, seasonally adjusted.

“Australia’s property market is showing amazing resilience with new housing loan commitments up in August in spite of Melbourne’s lockdown,” said Steve Mickenbecker, Canstar group executive of financial services.

Notably, the ABS data also showed the value of external refinancing was down 4.2% from the month prior.

“Refinancing is down from July with the third straight fall from the huge spike in May, but it is still in vogue being up 22% on August last year,” said Mickenbecker.

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