Improved access to finance and lower interest rates are helping households get into real estate, with the number of new loans in July rising 4% to $32.24 billion. This is the second successive month in which the value of lending has increased. Lending to owner-occupiers (excluding refinancing) rose 5.3% in July, new ABS data shows. Refinancing of existing home loans increased 5.4% with home-owners seeking the best value for money, as lenders compete by offering attractive deals.

RateCity.com.au research director Sally Tindall says the stars are starting to align for borrowers – lower interest rates, tax cuts and more relaxed serviceability measures. “This is the first month that factors in APRA’s axing of its 7% serviceability floor,” she says. “It’s likely that part of the bounce can be attributed to this and we expect it to continue to have a positive effect on the market.”

CoreLogic’s head of research Tim Lawless says: “We haven’t seen monthly numbers of this magnitude since 2016 for investors and 2015 for owner-occupiers. All the stimulus flowing through the marketplace is now starting to show up in credit flows.”