2021 was a record year for lending with Australians borrowing more on housing than any other year on record. Many economists are now saying that they believe lending frenzy has likely peaked as borrowers are now seeing a return to higher interest rates.
Over the final months of 2021 we started to see a lift in interest rates for fixed rate loans as the global money market started to rise again. With changes that were also brought about by APRA, lending criteria has also tightened, meaning that the average Australia can now borrow around $50,000 less than they could before.
So, what does this mean for lending in 2022? We’re a lucky market in Brisbane. We’ve not struggled through Covid like our neighbours, and what we are now seeing is people moving north. There is a new influx of people moving to Queensland but we are also seeing a large rise in interstate investors as they take advantage of what is cheaper property prices than Sydney or Melbourne. These people are finding that their banks are not as accommodating to let them get to where they need, and that is why they are reaching out to mortgage brokers. We know the policies across the lenders and where to assist clients to maximise their affordability for a new property. This can move clients from one price point to the next.
We believe that the growth will continue strong in our Brisbane market and we are excited for the year to come.