Borrowing by owner-occupiers is significantly outpacing investor activity, according to new data from APRA, the banking regulator.
Australia’s authorised deposit-taking institutions (ADIs) made $1.6 trillion of home loans in June – up 6.7 per cent on the year before.
Owner-occupier loans rose 7.5 per cent to $1.0 trillion, while investor loans rose 5.1 per cent to $0.6 trillion.
On 31 March, APRA told ADIs that their annual investment lending growth should “comfortably remain below” 10 per cent. This was one of several measures the regulator took to “reinforce sound residential mortgage lending practices in an environment of heightened risks”.
Home loans – all authorised deposit-taking institutions
| June 2017 | Monthly change | Quarterly change | Annual change | |
|---|---|---|---|---|
| Owner-occupier loans | $1.0 trillion | 0.7% | 2.0% | 7.5% |
| Investor loans | $0.6 trillion | 0.4% | 1.3% | 5.1% |
| Combined | $1.6 trillion | 0.6% | 1.8% | 6.7% |
ANZ, Commonwealth Bank, NAB and Westpac increased their mortgage lending by 6.4 per cent over the year – lower than the average recorded by all ADIs.
The big four banks had an 82.6 per cent market share in June, which was marginally down on the 82.8 per cent share recorded the year before.
Home loans – big four banks only
| June 2017 | Monthly change | Quarterly change | Annual change | |
|---|---|---|---|---|
| Owner-occupier loans | $0.8 trillion | 0.6% | 1.9% | 6.9% |
| Investor loans | $0.5 trillion | 0.5% | 1.3% | 5.5% |
| Combined | $1.3 trillion | 0.6% | 1.7% | 6.4% |
| Big four market share | 82.6% | Unchanged | Unchanged | -0.2 points |
While home loans grew considerably during the year to June, it was a different story for credit cards.
Credit card loans totalled $42.3 billion in June, which was just 1.1 per cent higher than the year before.
The big four banks recorded a significant drop in market share – from 82.6 per cent to 82.4 per cent.
Credit card loans
| June 2017 | Monthly change | Quarterly change | Annual change | |
|---|---|---|---|---|
| Credit card loans | $42.3 billion | -0.1% | -0.7% | 1.1% |
| Big four banks | $34.9 billion | -0.1% | -0.8% | -1.2% |
| Big four market share | 82.4% | -0.1 points | -0.2 points | -2.0 points |
