First-home buying has plunged to a four-year low, according to mortgage broker AFG. Only 9. 5 per cent of all new mortgages processed by AFG last month were for first home buyers, the lowest level since June 2010, the broker said today. Of the total $3. 9 billion of home loans processed by the company, $324 million were for first home buyers. "This contrasts sharply with the $1. 5 billion arranged for investors," AFG said.
The long-term average for first home buyer loans was around 12 to 15 per cent of the total, AFG’s Mark Hewitt, general manager sales and Operations said. "We saw overnight slumps from those levels when NSW and QLD withdrew first home buyer grants two years ago," he said. "Since then, property prices in Sydney in particular, have been steadily increasing.
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