View from the mortgage coal face: First home buyers poised to return

A staggering 52 per cent of the past months loan enquires have been from first home buyers, says John Ewens, National Sales Manager at www.eChoice.com.au.

“Loan enquiries in general jumped 42 per cent during May compared to April 2013, also partly bolstered by the lowest fixed rate options we have had in market for some-time,” continued John.

The return of first-home buyers is significant as the latest ABS figures for home lending show that in March 2013 first home buyers accounted for only 14.1 per cent of all home loans; the lowest percentage of first home buyer loans since March 2009.

“The bulk of the remaining enquiries during May, 41 per cent, were from existing home owners. Within this group 83 per cent were home owners and 17 per cent investors.

Mortgagees seeking a better deal accounted for seven per cent of all enquiries. Reviewing the market, it appears that many foresee further rate cuts from the RBA this year.

As loans settle over the coming months, we will have further evidence of the return of first home buyers. Early trends point to growth. In May and June this year data extracted from our mortgage applications show that 21 per cent of buyers were 18 – 29 years and 22 per cent were aged in their thirties. While not all will be first home buyers, 43 per cent of buyers coming from these age brackets suggest an upward step from March ABS figures,” continued John.

John anticipates further opportunities to monitor trends over the coming months with eChoice’s recent launch of Get the Real Picture on www.domain.com.au. The service, which is the first to offer consumers the home loan finding tools that were once only available to the mortgage industry, generates a unique report of loan options tailored to the applicant’s situation and preferences and a specific property listed on Domain. Each home loan option is generated without allegiance to any financial institution, making it the only transparent overview available to consumers of the Australian mortgage market place.

This unique view of emerging mortgage trends is from the coal face of the industry – the loans application process. As the national sales manager for www.echoice.com.au, one of Australia’s only true transparent mortgage finding services, John oversees more than 400 brokers, who work across both metropolitan and regional Australian cites. With his team, he manages mortgage applications for more than 25 lenders, spanning big bank and non-bank lenders and hundreds of mortgage products. eChoice, is part of the Firstfolio group who manage $20 billion in loans.

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