NEWS \\ rising on variable rate loans. At its quarterly meeting in December, the Council of Financial Regulators thought it was too early to assess the impact of raising the serviceability buffer to three percentage points above the loan product rate being applied, from 2.5 percentage points previously.
“Affordability constraints and rising fixed interest rates are reasons for this slowdown” CoreLogic – rose by just one per cent in December, the slowest pace in almost a year, although over 2021 they were still up more than 20 per cent nationally. Affordability constraints and rising fixed mortgage interest rates are seen as reasons for this slowdown. In October the banking regulator also tightened rules when applying for a loan, to ensure prospective home buyers can pay the mortgage when interest rates inevitably start
LOAN DEMAND TO SLOW AS HOME PRICES COOL Demand for mortgages is expected to slow as Australia’s housing price boom comes off the boil. House prices – as measured by
However, they continue to keep a watchful eye on developments in housing market more broadly. Economists at AMP Capital expect loans for housing to have risen two per cent in November. In October, housing loan demand from investors neared the record high set in April 2015 after rising for 12 consecutive months. In contrast, loans for first-time buyers fell for a ninth month in a row and were 16 per cent lower for the year. -AAP
STEADY GROWTH AMID PANDEMIC In January, the Australian Bureau of Statistics released its monthly building approvals data for detached and multi-units covering all states and territories. Housing Industry Australia’s (HIA) chief economist Tim Reardon says approvals for detached homes in November 2021 were the strongest since February 2000, excluding the HomeBuilder surge in 2020/21. Detached approvals remain elevated in all jurisdictions. “This boom in detached home building is set to be sustained well into 2023.
Call, Call, Carpet Call! - the experts in the trade FROM
49 $
/SQM /SQ /S / SQ S QM Q
FLOORING
RANGE
•
COLOURS
•
CHOICE
•
STYLES • FINISHES
6 NICKLIN WAY, MINYAMA (BESIDE TOYWORLD)
54442200
20 My Renovation | February 2022
20.indd 1
20/01/2022 1:08:53 PM
