First time buyer and investor demand for mortgages surged to an all time record high in November, according to AFG.
Property investors accounted for almost two out of every five mortgages sold in November – an all time record for the AFG Mortgage Index, which goes back six years.
The overall number of mortgages processed last month also surged, by 18.4 per cent.
Investors were especially active in New South Wales (44.6 per cent) and Victoria (39.8 per cent).
AFG general manager of sales and operations Mark Hewitt said while November is seasonally a strong month for mortgages, the rate cut certainly stimulated demand.
"We're experiencing the paradox that weaker global economic conditions and lower rates, is good news for Australian property buyers – at least for now. It's significant that investors and first home buyers are leading the action," he said.
"Many had been fearful that we were locked into a scenario of constant rate hikes. The November rate cut proved to be a real a turning point and the outlook is very different now."
Data from AFG found over $2.9 billion of mortgages were processed in November – the highest such figure since March 2009.
Growth was particularly strong in Victoria, where mortgages processed leaped 26.7 per cent, and in Queensland with 20.8 per cent growth.
This information is provided by DPN Pty Ltd ABN: 94 630 700 186, Australian Credit Licence 514759. DPN Finance Pty Ltd is an authorised credit representative 504129 and a related entity of DPN Pty Ltd. Casa Capace Operations Pty Ltd ABN: 79 624 981 184, NDIS provider Number 4050038018 trading as Casa Capace.