The Year Ahead

With so many mixed messages going around about the state of the economy, we thought it was time to look at what the statistics tell us. Here's a round-up of the latest research on the Australian property market (sourced from SQM Research and Genworth's Home Grown Mortgage Industry Perspectives report).

  • Australians remain better placed to cope with their debt levels than borrowers in many other countries. 45% of Australian borrowers are overpaying their mortgage, compared to an eight-country average of 26% (across Canada, India, Ireland, Italy, Mexico, the UK and the US).
  • The typical borrower in 2012 is expected to be refinancers and upgraders, with first homebuyers and investors remaining cautious.
  • In the past year, WA has seen the largest growth in lending, then QLD, followed by VIC and NSW, with SA and TAS having seen a drop in home lending.
  • Of the capital cities, Sydney stands out as a being on track for house price growth of between zero and 4 per cent by the end of 2012, factoring in no interest rate change.

The statistics show us it's not all doom and gloom, with the health of the property market varying from suburb-to-suburb and state-to-state. As your mortgage broker we would be happy to speak with you in person about any lending issues you may be concerned about for the coming year.

If you would like to contact one of our brokers and make a loan enquiry, please click here.