Just as I predicted in an earlier column. First home buyers are scrambling to get a mortgage before the door slams shut. Second tier lenders will be rubbing their hands thinking of all the 20% second mortgages or personal loans they will be making. Just you wait and see. In a few months the headlines will be screaming about rising rents as those who missed out join the renting class, maybe for ever.
Race to beat loan deadline
By Lucy Bennett
Sep 13, 2013
Young people are making mortgage inquiries at a record rate to beat home-loan restrictions which begin on October 1, a credit bureau says.
Latest data from Veda showed house buyers aged 28 and under were inquiring about mortgages at rates not seen in the past seven years.
It was evidence that first-home buyers were shopping around for mortgages so they could buy before the low-equity home lending restrictions came into force, Veda managing director John Roberts said.
Inquiries from prospective “generation Y” home buyers increased by a 51.25 percent.
“We have never seen an increase in applications like this – the data is compelling evidence that first-home buyers are trying to buy before the Reserve Bank restrictions effectively limit the number who can buy with a 10 per cent deposit or less.”
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