The Australian Bureau of Statistics released its September Lending Finance figures today – showing a continued small percentage rise in finance numbers.
SEPTEMBER KEY POINTS
SEPTEMBER 2011 COMPARED WITH AUGUST 2011:
HOUSING FINANCE FOR OWNER OCCUPATION
The total value of owner occupied housing commitments excluding alterations and additions rose 0.8% in trend terms and the seasonally adjusted series rose 0.7%.
The trend series for the value of total personal finance commitments rose 0.2%. Fixed lending commitments rose 0.6%, while revolving credit commitments fell 0.3%.
The seasonally adjusted series for the value of total personal finance commitments fell 2.5%. Revolving credit commitments fell 7.3%, while fixed lending commitments rose 1.7%.
The trend series for the value of total commercial finance commitments rose 0.3%. Revolving credit commitments rose 0.6% and fixed lending commitments rose 0.1%.
The seasonally adjusted series for the value of total commercial finance commitments fell 10.0% in September 2011, after a 7.7% rise in August 2011. Revolving credit commitments fell 15.3%, after a 6.2% rise in the previous month. Fixed lending commitments fell 7.3%, after an 8.5% rise in the previous month.
The trend series for the value of total lease finance commitments rose 0.6% and the seasonally adjusted series rose 1.3%.
FIRST HOME BUYERS RE-ENTER MARKET
The Real Institute of Australian announced last week that housing first home buyers are dipping their feet into the market again – a drop in interest rates and reduced property prices renewing buyer confidence for the first time in two years.
REIA housing figures for September show the number of first home buyers, as a percentage of total owner occupied housing commitments increased to 16.4 per cent compared to 15.4 per cent in August.
The REIA says although this proportion is well below the long-run average of 20.1 per cent, it indicates a modest return of first home buyers to the market.
“The latest figures show that buyers are gradually returning to the market and we should expect modest increases to continue after the decision on interest rates in November which has made housing more affordable for first home buyers,” concluded REIA Acting President, Pamela Bennett.
First home buyers wishing to take advantage of more affordable conditions need to know there is more to applying for finance than wages and savings records. Many will neglect one vital check which may mean their finance application is rejected.
Anyone applying for a home loan should obtain a credit report prior to making a finance application, regardless of whether they think they have a good credit rating or not.
The last survey on errors within credit files was conducted by the Australian Consumer Association (now Choice magazine) in 2004. The study found that 34% of the credit files of those surveyed potentially contained errors of some kind.
“In our view, there are serious, systemic flaws which are leaving an increasing number of Australian consumers vulnerable to defamation, mis-matching and harassment,” the report said.
The possible volume of errors on credit files means every buyer should make obtaining a credit report one of the first steps to securing a home loan.
Buyers can obtain a credit report for free every year, but most don’t know it.
They are also seldom aware that if they find defaults, writs or Judgments which they believe have errors, are unjust or are completely innacurate, they have the right to have them removed. This is possible in a number of ways, but for most people who are time poor or not familiar with credit reporting legislation, they can contact a credit rating repairer to do the job for them.