Aussie reports record spike in pre-approvals

PHOTO: The major brokerage has reported a record increase in home loan pre-approvals across the first eight months of the year, with FHBs leading the charge.

Aussie has reported a 71 per cent jump in home loan pre-approvals across January to August amid the 2020 pandemic.

While the group has not released the actual figures in real terms, it noted that the month of August saw the highest volume of pre-approvals on record since 2014, with the figure more than doubling since 2018, according to the major brokerage.

According to the group, first home buyers (FHBs) accounted for more than half – or 53 per cent – of the pre-approval volumes across January to August. It added that pre-approvals in this segment increased by more than 130 per cent during this period, compared with the previous corresponding period.

Across the states, NSW recorded the highest pre-approval volume this year, followed by Victoria, Queensland and South Australia.

However, despite the increasing volumes in Victoria, there was a steep fall in the state recently amid the economic fallout from the second round of restrictions to curtail the second wave of the coronavirus.