Mortgage lending rose 25% in NSW, 19% in Victoria, 17% in each of Qld and SA, and 2% in WA during the last Quarter of 2019.

Mortgage brokers attribute the increase to easier lending conditions and renewed buyer con dence.

Brokers say they processed $15.4 billion in home loan applications during the quarter – 19% more than for the same period in 2018.

David Bailey, chief executive Australian Finance Group, says interest rate cuts and easing of rate buffers, which check borrowers’ capacity to make repayments if interest rates rise, have encouraged borrowers back into the market.

The Federal Election result and removal of threats to changes in negative gearing for property investors have also helped improve market sentiment.

Non-major banks were responsible for 47% of loan applications, the highest since 2007.

The average mortgage size for the nal quarter of 2019 was $539,000 compared to $508,000 for the same period in 2018.