Jeremy Andrews: Key Mortgages broker on more people getting mortgages approved

More people are getting mortgages approved as they prepare for the Official Cash Rate to fall further.

Latest Centrix figures show mortgage enquiries are up 16% for the month of July and new mortgage lending rose almost 25%.

Key Mortgages broker Jeremy Andrews told Andrew Dickens many people are getting approved and just holding off.

He says there's been more activity lately - with one client of his going to auction, and nine people registered to bid.

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Episode Transcript

Speaker 1 (00:00):
So let's talk about property. Interest rates are softening and
the property market though, is still in limbo. Excuse me.
So we've got Centrics data which was out today. It
shows new mortgage lending is up twenty five percent year
one year, listing's up nine percent, and yet prices remain flat.
So is now really the time to buy? I'm joined
by Jeremy andrews Now. Jeremy's a mortgage broker at Key Mortgages,

(00:23):
and I thank you for joining us. Good morning to you, Jeremy,
Good morning Andrew. You're noticing the uptic and new mortgages.

Speaker 2 (00:30):
It's kind of up and down a bit at the moment. Suddenly,
the last couple of months were very big months gener
around times worth banks were really blowing out, but it
has dropped off just a little bit now. So it's
kind of how it comes in waves.

Speaker 1 (00:47):
With the mortgage lending up twenty five percent, If people
are borrowing and yet not buying, then what are they
spending the borrow money on.

Speaker 2 (00:57):
It's probably just around when they're buying. I think we
certainly got We've got a lot of people at the
moment just getting pre approved. Interest rates have dropped a lot,
especially with the latest OCR drop the committee. One of
the big changes compared to the previous OCR review is

(01:20):
two out of six in the Reserve Bank Committee voted
for a fifty drop, a fifty point drop rather than
twenty five. So following that, interest rates have dropped a
lot more.

Speaker 1 (01:31):
Yeah, so you reckon that the market is actually factoring
in the fact that there may be even more interest
rate drops and so they might hold off a little
bit longer.

Speaker 2 (01:41):
Yeah, there are a lot of people just kind of
getting approved and just holding off. I saw just lately
a lot more activity. I saw we had one client
going to auction and there were nine people registered to
bid at that auction, which is the first time I've
seen that in a long time. So I think people

(02:01):
are still being it's still a buyer's market, and people
are still being a bit kind of cautious just around
how much they spend. I don't think FOMO is really
really fully kept true. It is a little bit now.

Speaker 1 (02:14):
So the house prices they're still slowly dropping, but we've
got buyers and they're cashed up, they've got their mortgages,
they're ready to go. So how long before we see
house prices turning The corner and going the other way.

Speaker 2 (02:26):
I think we probably I think we have turned that corner,
or we must be very closer if we haven't. It
depends on the region as well. I know some regions
haven't really really been coming down. This still going ahead.
A couple of couple of the big metros are still
struggling in terms of when we turn that corner. I

(02:49):
think we'll probably see. Yeah, that'll be quite a hot
summer ahead.

Speaker 1 (02:54):
Jerry Andrews from Key Mortgages, I thank you so much
for your time.

Speaker 2 (02:57):
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