The latest borrower trends from Your Mortgage

More than 150,000 visitors use yourmortgage.com.au every month – here’s the latest insight on Australia’s borrowing trends from the Your Mortgage Index

PURPOSE OF MORTGAGE
• February saw a drop of almost 7.5% in the proportion of enquiries from first homebuyers, compared to 12 months ago
• Home renovations accounted for just 1% of enquiries
• Refinancing is on the rise with the number of households refinancing for a better deal up 6% compared to the same period
last year – a reaction to the big banks raising interest rates independent of the RBA’s announcement

ACTIVITY BY STATE
• The outlook is brightest in the Sunshine State – Queensland recorded a close to 5% increase in enquiries
• NSW enquiries dropped off by 6% – perhaps a reaction to the withdrawal of first homebuyer incentives
• Other states relatively stable

HOW SOON IS THE MORTGAGE NEEDED?
• The proportion of borrowers looking for a mortgage right now dropped marginally, as did those who don’t need a mortgage immediately
• The proportion of buyers looking for a mortgage in the next few months increased by 2% – indicative of buyers positioning
themselves for buying in the autumn?
• Average loan size is $359,599 – up $10,000 on February 2011

Source for all data: Your Mortgage Index, February 2012