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Home loan lending up despite investors retreat
There’s been a steady increase in the value of new owner-occupier home loans, according to ABS data released today.
ABS lending to households and businesses statistics for September show owner-occupier loans were up 3.22 per cent from August, to $14.2 billion, while all loans were up 1.3 per cent, in seasonally-adjusted terms, excluding refinancing.
Interestingly, after three months of steady growth, investors appear to have backed off, with a drop of 4.00 per cent month-on-month to $4.7 billion.
Lending to households and businesses
Value of new loans | % change Aug-Sept | $ change Aug-Sep | % change Sept18 - Sept19 | $ change Sept18 - Sept19 |
Owner-occupiers | 3.22% | $444.3 million | 5.62% | $787.4 million |
Investors | -4.00% | -$195.5 million | -13.63% | -$740.8 million |
All loans | 1.33% | $248.8 million | 0.09% | $16.6 million |
Notes: Seasonally adjusted figures. Figures exclude refinancing.
Source: ABS lending to households and businesses statistics for Sept 2019, released 8 November 2019
Fixed loans are creeping back into favour with borrowers.
The proportion of owner-occupiers fixing home loans has increased to 12.40 per cent.
Home loan share
| Sept 2019 | Aug 2019 | |
| Fixed loan share | 12.40% | 11.90% |
| First home buyer share | 29.00% | 29.80% |
Source: ABS lending to households and businesses statistics for Sept 2019, released 8 November 2019
RateCity.com.au research director Sally Tindall said the home loan market is continuing to rebound, despite a downturn in investors.
"Owner occupiers have continued their comeback this month, boosted by tax cuts, rate cuts and a relaxing of serviceability requirements by the banks.
“Surprisingly investors took a dive this month, however, after three months of strong growth, particularly in the month prior, there’s every chance this is an anomaly.
“With another rate cut likely to be waiting in the wings, it’s no surprise most Australians are sticking with variable rates.
“However, we have seen a slight increase in the number of people choosing to fix at what are now historic low rates.
“In the last two weeks, 34 lenders have cut fixed rates to as little as 2.50 per cent for two years – a new record low,” she said.
Disclaimer
This article is over two years old, last updated on November 8, 2019. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
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Product database updated 20 Apr, 2024
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