Average NSW Home Loan Rises Above $500,000

Falling interest rates and rising home prices have pushed the average NSW home loan to above $500,000.

Mortgages with banks and other lenders have been rising steadily, particularly in Sydney where auction clearance rates have sat at around 80% over the last few months. Suburban prices are also at their highest ever levels.

Sydney home prices have increased by 5.4% in the last quarter and growth of around 10% is expected for the year.

The NAB has reported a surge in customer interest following the decision by the Reserve Bank to cut rates last month.

AFG said 49.5% of its borrowers last month were investors. This is the highest level the company has experienced in NSW over the last 15 years that it has been collecting data.

Many investors are using equity from their current properties to purchase new homes.

High rental rates are also driving investors to borrow more, safe in the knowledge that they will be able to service a larger debt.

Source: http://smh.domain.com.au/real-estate-news/boom-time-as-average-home-loan-crosses-500000-20130903-2t3cs.html