NSW mortgages spike in 2020

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    Strong refinance activity drove a spike in mortgage volumes in New South Wales in 2020, according to new data.

    There were 294,254 mortgages registered on NSW residential titles last year, according to the December 2020 Residential Mortgage Activity report from NSW Land Registry Services (NSW LRS). That’s a spike of nearly 14% over 2019.

    The growth was driven largely by refinance activity, according to a report by The Adviser. Refinances rose 22% year over year thanks to record-low interest rates and competitive cash-back offers from lenders.

    Commonwealth Bank of Australia posted the largest number of NSW mortgages last year, with 56,020 mortgages registered in the state, according to NSW LRS. That’s a 12% improvement over CBA’s 2019 numbers. The bank also posted the largest year-on-year volume increase in newly originated mortgages.

    ANZ posted the largest increase in mortgages held over NSW property over the course of the year, The Adviser reported. The bank’s annual volume rose 80% to 33.585 mortgages. ANZ’s performance was driven by loans being refinanced into the bank. ANZ posted almost three times more mortgages through refinancing in 2020 than in 2019, according to NSW LRS.

    Westpac lost the most mortgages on residential titles last year, while Macquarie gained the greatest share of mortgages on residential titles.

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    While the economic fallout of COVID-19 caused the mortgage market to stumble over the year, December saw the NSW mortgage market hit a three-year high, according to The Adviser.

    Newly originated mortgages were up 25% annually in December 2020, and posted the largest net gain in more than two years. This was driven by the leveraging of previously unencumbered properties – new mortgage saw an increase of 25%. Refinance volume also stayed strong in December, up 5% over December 2019.

    The major banks also grew their market share of new mortgages year on year in December, with 1,813 mortgages retained by the big four – the highest level in more than 24 months.

    “In a year like no other, trends were disrupted – particularly for emerging non-ADI lenders,” said Jerry Goldfried, director of analytics and insights at NSW LRS. “There have since been early indicators of a rebound for some lenders in the closing months of 2020. Given that mid-year mortgage activity was impacted as NSW property buyers navigated COVID-19, it is encouraging to see December close out so strongly.”

    Original Article