Strong demand from investors drove the overall number of home loans processed in September to a record high, according to mortgage broker AFG.
Last month 40.3 per cent of the mortgages processed by AFG were for investors, a slim increase on the previous all-time high of 40.0 per cent recorded in May this year.
Investment mortgages comprised 49.7 per cent of new home loans processed last month in NSW, followed by 37.2 per cent in Victoria, 36.4 per cent in South Australia, 34.9 per cent in Queensland and 32.2 per cent in WA.
September also saw first home buyers fall to a record low of just 8.4 per cent of new home loans processed. First home buyers comprised 3.7 per cent of new home loans in NSW, 5.1 per cent in QLD, 7.5 per cent in SA, 9.1 per cent in VIC and 18.5 per cent in WA.
General Manager of Sales and Operations Mark Hewitt remarked that with countries like Canada making it more difficult for overseas residents to invest in property, very strong demand from investors can be expected this spring.
The number of borrowers choosing to lock in fixed rates rose again in September to 25.3 per cent.