Specialist Lenders are experiencing new highs, as it doubled in size compared to banks for the month of October, signs that this sector is growing at a fast pace.
The interest rates have been pegged at 2.5%, and it’s no surprise that because of this, new loan values for October ballooned to a record $22 billion. Around this time, bank lending has increased to 0.9%, while Specialist Lenders increased by 2.3%.
Home loans are primarily dominated by Investors, while First Home buyers only account for 12.6% of loan approvals, a direct result of the constant rise in home values. The demand for homes are as strong as ever, yet it is imperative that lenders are mindful of keeping standards in check, to ensure that clients are also protected in case interest rates increase.
Read more about this on the Sydney Morning Herald website.