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AU Brokers see spike in new mortgages

Property Here - Friday, May 03, 2013

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HOME buyers revved up their purchasing power during April with a surge in new mortgages issued through two of the country's biggest mortgage brokers.

According to AFG, the company processed a record $3.2 billion in home loans during April -- up 40 per cent on the same month last year.

It was the largest monthly total recorded by the company and compares with just $2.2 billion in April last year.
The spike follows on from March, which was also a record-breaking month for the broker, when its mortgages reached $3.17 billion.

The company says it has 10 per cent of the mortgage market and its figures are an indicator of the Australian Bureau of Statistics reports not published until about six weeks after the month ends.

"We're seeing more confidence in the market than for some time,'' AFG general manager of sales Mark Hewitt said yesterday.

"But recovery, like property price growth, is very patchy.''

Fixed-rate home loans, already at an all-time high, increased further during April to be 30.7 per cent of home loans, up from 21 per cent in April last year.

Listed mortgage broker Mortgage Choice also reported an increase in activity.

|"When compared to this time last year, Mortgage Choice loan approval data reflects a similar trend of rising home loan demand and an appetite for fixed-rate loans,'' Mortgage Choice spokeswoman Belinda Williamson said.

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