Lenders cut rates and boost terms to test property bounce

PHOTO: Less stock is generating competition among buyers. Peter Rae SMH

Lenders are aggressively targeting cashed-up borrowers with autumn offers ranging from “no deposit” mortgages to doubling Velocity Points in a bid to sustain this weekend’s improvement in property sales.

Clearance rates climbed to about 52 per cent over the weekend, compared to about 50 per cent the previous week, albeit at much lower volumes because four of the nation’s eight states and territories had a long weekend.

“Next week will be a big test for the market,” said Steven Lusi, a director of Melbourne-based Direct Property Group, who said increased volumes will reveal any change in market direction.

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