By Ben Abbott | 14 Sep 2010
Enquiries from first homebuyers looking to crack the property market are continuing to rise.
The latest figures from mortgage broker Loan Market show a 27.7% increase in enquiries during the month of August from first homebuyers, when compared with the previous month of July.
The group said an easing of lending criteria from some banks has encouraged borrowers into the market.
Loan Market chief operating officer Dean Rushton said some banks were increasing their loan to value ratios, while lenders were also reducing fixed rates and offering Spring specials to tempt first time buyers.
"These are ideal conditions for first time buyers who have been less active since generous boosted government concessions such as the expanded First Home Owners Grant were wound back at the end of last year," Rushton said.
The findings of Loan Market tally with those of mortgage broker Aussie which reported a surge in first homebuyer activity since March, with a doubling of enquiries via its website.
Mortgage Choice spokesperson Kristy Sheppard said that consumer confidence in the housing market is quite strong, but there are still hesitations from first time buyers unsettled by affordability concerns.
“The latest ABS housing finance figures show a small increase in the number of first homebuyers as a percentage of total owner-occupied dwelling commitments, up point one of a percent to 16.1% in July," Sheppard said.
"Our data supports this. However, that ABS figure was 25% for the same period last year," she said.
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