Mortgage loans on the rise despite the decline in investors

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There has been a steady increase in the value of new homeowner home loans, according to ABS data released today.

ABS household and business lending statistics for September show homeowner loans increased 3.22% from August to $ 14.2 billion, while all loans increased by 1.3 %, in seasonally adjusted terms, excluding refinancing.

Interestingly, after three months of steady growth, investors appear to have retreated, falling 4.00% mo to $ 4.7 billion.

Loans to households and businesses

Value of new loans

% change August-September

$ change

August September

% cash

September 18 – September 19

$ change

September 18 – September 19

Owner occupants

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 loans statistics to households and businesses for September 2019, published on November 8, 2019

Fixed rate loans are making a comeback with borrowers.

The proportion of homeowners securing home loans rose to 12.40 percent.

Home loan share

Sep 2019 august 2019
Fixed loan share 12.40% 11.90%
First buyer’s share 29.00% 29.80%

Source: ABS loans statistics to households and businesses for September 2019, published on November 8, 2019

RateCity.com.au’s research director, Sally Tindall, said the home loan market continues to rebound, despite a slowdown in investors.

“Homeowners continued their comeback this month, spurred on by tax cuts, rate cuts and an easing of maintenance requirements by banks.

“Surprisingly, investors have plunged this month, however, after three months of strong growth, particularly the previous month, there is every chance that this is an anomaly.

“With another rate cut likely to wait behind the scenes, it’s no surprise that most Australians are sticking to variable rates.

“However, we have seen a slight increase in the number of people choosing to repair at rates that are now historically low.

“In the past two weeks, 34 lenders have cut fixed rates to just 2.50% for two years – a new record,” she said.


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