Finder makes money from featured partners, but editorial opinions are our own.

Despite falling auction clearances, 2016 mortgage season will grow


Despite falling auction clearances 2015 mortgage season will grow

Almost 170,000 Australians will take out a home loan this spring.

Don't let falling auction clearance rates fool you. The last quarter of 2016 will still see plenty of Australians dive into the traditional spring "mortgage season" and take out a home loan.

Projections by suggest that during spring, a total of 168,842 home loans will be financed. That's up 6,373 (4%) on spring 2014. The forecast is based on trends in home loans since 2010 (post-GFC).

The value of those loans will also go up significantly, hitting $65.2 billion. That's up 20% on the 2014 figure of $54.3 billion. That change is driven in large part by rising property prices. The national average mortgage was $371,200 in August (so if you've found a house you can buy while borrowing less than that, count yourself lucky). That said, the majority of those mortgages (85%) will go to existing homeowners looking to move.


High prices have had an impact on auction clearance rates, which have dropped in both Sydney and Melbourne. Borrowing larger sums may seem tempting given the current low official Reserve Bank rates, but those aren't going to stay low forever. A full 60% of experts in's Reserve Bank survey predict rates will rise next year, so bear that in mind when considering whether to choose a fixed or variable rate.

Picture: Anne Ruthman, licensed under Creative Commons Attribution-NonCommercial-ShareAlike 2.0 Generic (image cropped)

Find the right home loan now

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and 6. Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site