The number of new home loans issued surged again in September, as first home buyers raced into the market to beat the reduction in the First Home Owners Grant.

There was a 5.1 per cent seasonally adjusted increase in the number of loans issued to owner occupiers, with 65,505 new loans issued.

In a good sign for the home building industry, the strongest growth was an 8 per cent increase over the month in the number of loans issued to people for the construction of new dwellings.

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