Ray White Now | Updated weekly Ray White Now | Vol 3 - 1 June 2020 | Page 7

• Interest rates are at record lows. Importantly, the
general consensus among economists is that they will
remain at these low levels for the foreseeable future.
case of auctions, a pre-approval enables buyers to bid
with confidence knowing they have the financial capacity
to buy the property.
• Banks and lenders remain very supportive of lending
for residential property.
• The low Australian dollar is attracting overseas buyer
interest.
The chart below shows the monthly home loan
preapprovals recorded by the Loan Market Group, which
is our loan brokerage partner and Australia’s largest
independent broker. Loan Market just posted a record
month of settlements with more than $1 billion in loans,
its biggest month ever. Pre-approvals are indicative loan
approvals obtained by buyers before they buy or in the
• Record levels of government stimulus are supporting
buyer sentiment.
Evidence of the strong demand is illustrated in the ‘Online
Enquiries’ chart showing the number of enquiries received
through raywhite.com and other major real estate portals.
Loan preapprovals
This chart compares the
number of loan preapprovals
submitted via Loan Market
brokers over the 17-18, 18-
19, and 19-20 financial years.
It shows higher levels of
preapprovals now compared
to 12 months ago.
# Loan Pre-approvals / 28 days
250
200
150
100
50
Jan Feb Mar Apr May Jun Jul
2017-18 2018-19 2019-20
Source: Loan Market
7