Loan applications up at the start of spring

National mortgage brokerage Loan Market has announced a 23 per cent increase in home loan applications across Australia at the start of the spring selling season, compared to the same period last year.

An uptick in property listings since 1 September has attracted more buyers to the market, with the brokerage group recording significant increases in home loan lodgements across the eastern states: 45 per cent in NSW, 22 per cent in Queensland, and 17 per cent in Victoria.

On-the-ground insights from brokers indicate that the rise in buyer sentiment is multifaceted, according to Loan Market’s chief marketing officer Angela Tracey.

“Buyers have been encouraged by the increase in market listings, offering greater choice and comparisons in their property hunt,” she said.

“But there’s a rising element of FOMO with the talk of future interest rate cuts likely to bring more competition to the market.”

Despite persistent inflation in some sectors of the economy, most economists believe Australia has moved past the threat of additional cash rate hikes.

The recent 50-bp cut by the US Federal Reserve has further ignited discussions regarding when Australia might follow suit (although unlikely due to the RBA’s rhetoric of keeping rates where they are in the near term). Several banks are already pricing in cuts to their variable offerings.

Tracey noted a clear uplift in the number of buyers eager to enter the property market this selling season.

“But brokers are also seeing a greater level of demand, with brokers now writing around three in every four home loans in Australia,” she said.

Pre-approval spike

This comes as Loan Market previously reported a “spike” in the number of pre-approvals in the lead-up to the spring season, which also rose by 23 per cent.

Loan Market broker Tommy Nguyen said that the growing number of property listings in capital city markets, following a period of undersupply, has encouraged more borrowers to enter the market.

“There are more people looking to get into the market this spring,” Nguyen said.

“We’ve seen the cash rate hold steady at the last seven RBA meetings and that’s provided buyers with more certainty around what they can borrow.”

Ngyuen said that pre-approval is an “important first step for many people to get the attention of sellers and real estate agents”.

[RELATED: Brokerage reports ‘spike’ in pre-approvals]

Adrian Suljanovic is a journalist at Broker Daily with more than two years experience reporting on all facets of the third party distribution channel.

Adrian has written for a range of business and finance titles including IFA, Investor Daily and Lawyer’s Weekly before joining the mortgages team in 2022.

He graduated from the University of Wollongong in 2021 gaining a Bachelor of Communication & Media with a major in Digital & Social Media.

E-mail Adrian at: This email address is being protected from spambots. You need JavaScript enabled to view it.