Record levels of home borrowing are highlighting the faith Aussies have in real estate and are another sign of the resilient nature of our property industry – and another great reason to look at buying your new home now.

“The total value of new loan commitments for housing and the value of owner-occupier home loan commitments both reached record highs in November 2020,” according to the latest Australian Bureau of Statistics (ABS) data.

“The value of new owner-occupier home loan commitments rose 5.5 per cent to $18.3 billion in November 2020, 31.4 per cent higher than November 2019”

It is the sixth month in a row the value of new home loans have increased.

The ABS said the main reason behind the record levels of borrowing are:

  • The implementation of the Government’s HomeBuilder grant in response to COVID-19 – which can apply to off the plan purchases, such as those for sale by Toplace, for eligible applicants.
  • Other federal and state government incentives, such as stamp duty exemptions and concessions and home buying grants.
  • Record low interest rates


Many buyers taking up incentives

This record level of lending is great news for all purchasers, especially first-home buyers.

“In November, the number of owner-occupier first home buyer loan commitments rose 3.1 per cent to reach 13,905 (seasonally adjusted), a 42.5 per cent rise since the start of the year,” the ABS report continues.

“This is the highest level since October 2009 when similar rapid growth was spurred by the temporary tripling of the first home owner grant, which was part of the Commonwealth Government’s economic stimulus package in response to the global financial crisis.”

Home buyers are taking advantage of favourable market conditions in record numbers.


The number of first-home buyer loans is up almost 50 per cent on the same time last year.

Real Estate Institute of Australia President, Adrian Kelly said the latest borrowing information had defied the Doomsday property forecasts made when COVID-19 hit Australia in March.

“The November lending figures confirm the resilience of the housing market with investors, first home buyers and owner-occupiers all active in the market,” Mr Kelly said.

“With limited stock and strong demand driven by a record low interest rate outlook, the market is likely to remain buoyant for the coming 12 months defying the doomsday forecasts of last year.”


Fear of missing out

Canstar finance expert, Steve Mickenbecker agreed, saying potential buyers were becoming increasingly wary of missing a great opportunity to purchase a new home.

“First home buyers are flooding into the market, responding to federal and state incentives and low interest rates,” Mr Mickenbecker said.

“With the property price buoyancy we have seen in some state capitals, fear of missing out will be playing on minds and driving people into action.

“Refinancing to a new lender has dropped for the second consecutive month in spite of tumbling interest rates, suggesting that the big banks might have stemmed the flow with their low fixed rate deals.”

Reach out to the team at Toplace and let us know how we can help your search for a new home. 

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