The latest ABS Housing Finance data shows that there were 54,323 home loans financed in August – down by 4% compared to July.
Yet comparison website finder.com.au has forecast that the total number of home loans financed this spring will be 168,482.
This will be 6,373 more than last year’s Mortgage Season, increasing by about 4%.
This is based on a forecast using post-GFC data since 2010.
The value of those loans will also go up significantly, hitting $65.2 billion.
That’s up 20% on the 2014 figure of $54.3 billion.
That change is driven in large part by rising property prices.
The national average mortgage was $371,200 in August
That said, the majority of those mortgages (85%) will go to existing homeowners looking to move.
Michelle Hutchison, money expert at finder.com.au commented:
“This shows that many borrowers are clearly taking on more debt, with the national average mortgage size the biggest on record, hitting $371,200 in August.
“The growth is largely being driven by property prices going up at an increasing rate.
CoreLogic PR Data shows an increase of 11% year-on-year from September (5 capital city aggregate), mainly lead by property in Sydney (+17%) and Melbourne (+14%).
“Half of all loans are expected to be property owners moving up the property ladder or downsizing, who aren’t first home buyers or refinancing.
“The biggest concern is that borrowers are over-stretching themselves and need to be careful not to take on too much debt while rates are low, as 60% of leading economists and experts in the finder.com.au Reserve Bank Survey are expecting interest rates to rise next year.”