ANZ mortgages trend down despite Aussie property trending up

author-avatar By
on September 01, 2021
ANZ mortgages trend down despite Aussie property trending up

Data released by the prudential regulator shows ANZ's mortgage sector lost nearly $1 billion worth of loans in July.

Data from the Australian Prudential Regulation Authority (APRA) Monthly Authorised Deposit-taking Institution (ADI) Statistics highlighted a strong month of growth in the sector.

Total residents loans and finance leases increased by $14.6 billion or 0.5%, led by a $8.5 billion or 0.7% increase in owner-occupied housing lending.

However ANZ saw its mortgage book lose an estimated $1 billion despite strong gains from other big four banks.

ANZ's combined value for investment and owner occupied mortgages stood at $261.77 billion for the end of July period, a decline from $262.79 billion at the end of June. 

In comparison, CBA's total value was an estimated $486.33 billion for the same period ending 31 July, a rise from $483.62 billion the month prior. 

Westpac grew from $417.9 billion to $420.17 billion, and NAB grew from $267.75 billion to $269.21 billion in the same period. 

CoreLogic data suggests property prices have risen 15.8% from January through August, while PEXA data shows the major banks clawed back home loan marketshare through the pandemic.

The most recent data from APRA also suggests that ANZ struggled to meet the high turnover of mortgage and refinance applications, resulting in many customers refinancing with other lenders. 

For ANZ, customers taking advantage of low interest rates also saw wait times for mortgage and refinance approvals balloon out. 

In an interview yesterday with ANZ's media arm bluenotes, ANZ's retail and commercial group executive, Mark Hand, admitted "assessment times moved out to a level we weren’t happy with".

Questions put forth to ANZ by Savings.com.au in July indicated home loan approval took 'typically' as long as 32 days - much slower than other lenders taking as little as a day.

In his bluenotes interview, Mr Hand also said that ANZ has done a lot of work over the past 18 months on processing capacity. 

"We saw a very strong performance in the home loan business in the second half of last year," he said.

"What we didn’t predict however was the huge, sustained rise in application volumes in 2021, particularly in the refinance market with customers shifting to take up fixed rates.

"This means we are now handling double the applications we were two years ago."

Despite the down month, Mr Hand said that ANZ's approval rates are beginning to improve.

"We understand the impact when our response times are too slow, but pleasingly, with assessment times in the broker space having improved somewhat we are seeing business from that channel starting to return," he said.


Advertisement

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS
NSW/VIC/SA METRO & INNER REGIONAL AREAS

Variable Home Loan (Principal and Interest)

  • $5000 Cashback. T&Cs Apply.
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
NO ONGOING FEESFREE REDRAW FACILITY
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
NO ONGOING FEESFREE REDRAW FACILITY

Live-in Variable Loan (Principal and Interest) (LVR < 90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of June 25, 2022. View disclaimer.



Image by Luis Villasmil via Unsplash

Latest Articles

author-avatar
Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

Collections:

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree
to the Savings Privacy Policy