Conditional home loan pre-approval applications have jumped 12 per cent this year compared to last year, following the first two 0.25 per cent per annum variable rate cuts, according to data from Commbank. The average application amount also rose, climbing 13 per cent to just over $733,000. This surge indicates Australians are actively preparing to enter the property market, whether as first-time buyers, those looking to upgrade, or investors seeking opportunities. Commbank is one of Australia’s leading providers of financial services, including retail, business, and institutional banking. They also offer wealth management, superannuation, and insurance products.
New South Wales experienced the most significant growth in pre-approval applications, with a 25 per cent increase. Queensland followed with a 16 per cent rise, while Victoria remained relatively flat. First home buyers are also showing increased activity, applying for an average of $546,000, an 11 per cent increase from the previous year.
According to Marcos Meneguzzi, CBA’s executive general manager for home buying, this trend reflects “a renewed sense of optimism as borrowers respond to lower interest rates and increased borrowing power.” He noted that conditional pre-approval is a valuable tool for buyers, providing clarity on their budget and enabling them to act swiftly in competitive property markets.
Meneguzzi also stated that borrowing capacity has increased by approximately 7 per cent following the three rate cuts implemented this year. This increase means that buyers may now have the potential to borrow up to $1.2 million on a household income of $225,000, further fuelling activity in the housing market.
