The average new mortgage size has increased to nearly $500,000: Pete Wargent

PHOTO: Mortgage finance

EXPERT OBSERVER

In July I noted via a stylised example how the lifting of the minimum 7 per cent mortgage assessment rate – when combined with the monetary easing then priced in – might result in a 15 per cent increase in borrowing power and activity for homebuyers (but not portfolio investors).

This is pretty much what’s played out, with investor credit growth running at the lowest level on record and mired in negative territory, while homebuyers have come back into the market with gusto.

As written about previously, Australian Finance Group (AFG) saw a $35,000 jump in the average loan size across two quarters of its lodgements data, largely driven by upwards moves in New South Wales and Victoria. 

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