Strong demand for home loans despite virus

Paul Osborne
·1-min read

Australians set two records for home loans in November as they continued to show confidence in the economy.

The total value of new loan commitments for housing rose 5.6 per cent to an all-time high of $24 billion in November - a 23.7 per cent increase on November 2019, the Australian Bureau of Statistics reported on Friday.

The value of new home loans for owner-occupiers rose by 5.5 per cent to a record $18.3 billion, more than 31 per cent higher than a year earlier.

The ABS said federal and state government incentives and ongoing low interest rates contributed to the growth.

Loan commitments for existing dwellings rose 5.9 per cent and were the largest contributor to the rise in November's owner-occupier housing loans.

The value of construction loans grew 5.6 per cent in November, rising 75 per cent since July as the government's HomeBuilder scheme grant scheme started to kick in.

In November, the number of owner-occupier first home buyer loans rose 3.1 per cent to reach 13,905 - a 42.5 per cent rise since the start of the year.

It is the highest level since October 2009 when growth was spurred by the temporary tripling by the government of the first home owner grant as a buffer against the global financial crisis.

The easing of coronavirus restrictions in Victoria led to owner-occupier home loans rising 19.6 per cent in that state in November.