In June new home loans rose 6.2% compared to May, with the housing finance sector adding $17.4 billion in value, show the latest figures from the Australian Bureau of Statistics.
One company to confirm the uplift is Mortgage aggregator Finsure Group which settled $15.6 billion in loans during FY2020, reflecting a year-on-year increase of 23%, despite difficult market conditions.
The recent improvements are attributed to Covid-19 restrictions being lifted in most parts of Australia and the announcement of the HomeBuilder scheme.
ABS chief economist Bruce Hockman says: “The rise in housing loan commitments in June reflects the easing of Covid-19 restrictions in May on auctions, open houses and mobility in general.”
RateCity research director Sally Tindall agrees. “It’s not surprising to see new lending has bounced back in June, as restrictions began to lift on auctions and open homes in May,” she says.
According to the ABS, new owner-occupier loans rose 5.5%, while investor loan commitments increased 8.1% over the month.
Owner-occupier loans through first-home buyer loan schemes rose 3.3% over the period.