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Home loan applications drop

Home loan applications fell by almost 24 per cent in the three months to September 2010, new research has found.

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According to a recent report by Veda Advantage, Queensland suffered the biggest fall in home loan activity, with the number of new mortgage applications dropping 32.4 per cent.

Victoria recorded the smallest drop, with home loan applications falling 17.4 per cent.

Veda Advantage head of consumer risk Angus Luffman attributed the drop in home loan applications to the removal of various government stimulus packages.

“Mortgage applications have dropped to record levels since the beginning of the year, with demand now at a level similar to that experienced during the midst of the GFC,” Mr Luffman said.

“The record decline continues to be measured against the impact of the Government stimulus package for first home buyers which inflated mortgage demand growth last year.”

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