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Home loan approvals see rate cut boost
Released 17 January 2012

Official home loan approval figures for November 2011 have displayed an eighth consecutive month of growth.     

Loan Market Chief Operating Officer Dean Rushton said the consecutive growth seen in the second half of 2011 should continue while consumers act upon repeated rate cuts by the RBA in November and December.

According to the latest Australian Bureau of Statistics (ABS) data, home loan approvals nationwide in November, 2011, were up 1.4 per cent from the previous month and had increased 1.5 per cent year-on-year.

“Consumers will likely remain confident in the housing finance market with the strong possibility of a rate cut in February,” Ruston said.

“This should fuel a significant number of approvals in the coming months, which will stimulate many struggling sectors in the economy.”

Approvals in New South Wales were up 4.9 per cent from October, 2011, and 9.4 per cent for the year.

“In NSW we’re seeing a significant demand brought forward by first home buyers acting before the 2011 deadline for the stamp duty exemption,” Rushton said.

“The stamp duty exemption was lifted for purchase contracts signed before 1 January 2012.”

He added NSW would see finance activity remain high for the start of 2012 as those deals obtained financing.