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Home Loans Tumble Amid Investor Tax Shake-up
11 Jun
Summary
- Mortgage applications are declining sharply, nearing a one-year low.
- New tax changes for property investors are weakening demand.
- Average monthly home loan applications fell 10% in April and May.
Mortgage applications through Westpac Banking Corp. are poised for their weakest quarter in a year. This downturn is directly linked to recent tax reforms targeting property investors, a change that has significantly dampened demand for real estate.
Data from April and May reveals a substantial decrease, with average monthly home loan applications falling by approximately 10%. This brought the average to around 30,000, a level not seen since the third quarter of the previous year.
This slump in demand underscores the immediate impact of fiscal policy adjustments on the housing market. Investors appear to be reassessing their property acquisition strategies in light of the new tax landscape.
