The demand for new home loans among first-time home buyers in Australia is beginning to return, according to figures from a recent QBE LMI report.
The influx of new mortgage customers is important for the country’s property market because it encourages “upgraders” to enter the market, it added.
Ian Graham, Chief Executive of QBE LMI, highlighted that healthy demand from first-time home buyers fuels demand for new residences among those already on the property ladder.
“First-home buyers’ demand for new whitegoods, furniture and so forth also results in a healthy economic stimulus,” he said.
The report added that up to 60,000 first-time home buyers entered the market recently.
Earlier this month, data released by the Australian Bureau of Statistics indicated that the number of mortgage approvals rose 2.2 percent month-on-month in September 2011.
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