Australia’s home lending market has smashed yet another record, with the value of new home loans approved in November hitting a new high of $23.96 billion.

The ABS Lending Indicators released today show the value of new home loans approved in November increased by 23.7 per cent year-on-year, based on seasonally adjusted data.

The charge was led by owner-occupiers who clocked up a record $18.34 billion worth of new lending in November, increasing 31.4 per cent year-on-year.

Investors, who had largely retreated from the market in the first half of 2020, posted a 6.0 per cent rise in November, the sixth consecutive monthly increase.

Value of new home loans approved in November

	Amount	Monthly change	Annual change
Owner occupier	$18.34B – highest ever	$955M (5.5%)	$4.38B (31.4%)
Investor	$5.61B	$319M (6.0%)	$212M (3.9%)
TOTAL	$23.96B – highest ever	$1.27B (5.6%)	$4.59B (23.7%)

Construction loans – value of new owner-occupier loans approved in November

Amount	Monthly change	Annual change
$3.01B – highest ever	$161 million (5.6%)	$1.46B (94.4%)

First home buyers – number of new owner-occupier loans approved in November

Number of commitments	Monthly change	Annual change
13,905 - highest since Oct 2009	3.1%	47.6%

Source: ABS Lending Indicators Nov 2020, released 15 Jan 2021, seasonally adjusted data

RateCity.com.au research director, Sally Tindall, said Australia’s low-rate environment was one of the biggest contributors to the record high.

“Record low rates are supercharging the amount people can borrow for a property and their chance of being approved for a loan,” she said.

“Government incentives such as the First Home Loan Deposit Scheme and the HomeBuilder program have also helped spur on significant increases in first home buyers and renovators.

“Lending in Victoria surged by 20 per cent this month as pent-up buyers did the rounds at onsite auctions and open homes when their lockdown lifted.

“While buyers in 2020 had a fleeting opportunity to capitalise on falling property prices, that’s unlikely to continue in 2021.

“Records in home lending are being smashed, yet the government is pushing ahead with changes to responsible lending legislation to free up the flow of credit.

“With property prices expected to soar this year, and pressure on buyers to overstretch themselves in fear of missing out, responsible lending laws will be more important than ever.

“Low rates might be stimulating home lending, but people can’t bank on them sticking around for the life of their loan.

“When rates do finally rise, some people might find they’ve bitten off more than they can chew,” she said.

State-by-state breakdown: value of new owner-occupier home loans in November

	Amount	Monthly change %	Annual change %
NSW	$6.06 B	2%	28%
VIC	$4.66 B	20%	11%
QLD	$3.65 B	2%	49%
SA	$1.03 B	-7%	27%
WA	$1.98 B	1%	76%
TAS	$275 M	-11%	27%
NT	$109 M	9%	91%
ACT	$429 M	-5%	25%

Source: ABS Lending Indicators Nov 2020, released 15 Jan 2021, excludes refinancing, seasonally adjusted data.

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