July Mortgage Stats from AFG

[keithj]

Interesting stats from Australias largest Mortgage Broker

We’re seeing a number of encouraging signs that the mortgage market is normalising. First home buying, investor activity and LVRs are all reverting towards the long term trend after a period of turmoil. But while confidence is creeping back into the market, the real concern is that over 90% of all home loans are controlled by just four institutions. The lack of consumer choice, and the implications that has for future pricing, is a real obstacle to the functioning of a healthy mortgage market.

• Average LVR is at 66%.
• People choosing Fixed loans are creeping up,, but still only at 8% (vs ~50% for Standard Variable).
• Big 4 banks now have >92% of all new loans, up from 80% 2 yrs ago.
• Investor numbers are increasing (to 29%), while FHB numbers are decreasing (to 19%).