Investment housing credit declines $2.3 billion in August

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on September 30, 2020
Investment housing credit declines $2.3 billion in August

Photo by Pawan Kawan on Unsplash

Reserve Bank data indicates $656.2 billion in investment home loan credit was on the books in August, while owner-occupier credit grew over the month.

Owner-occupier home lending increased 0.4% to $1.1968 trillion in August, while investment housing credit was flat, in seasonally adjusted terms.

'Other' personal credit (like credit cards and personal loans) decreased by $2.6 billion - or 1.1% - to $147.8 billion.

Business credit was also flat, down 0.4% on the month.

Total credit growth on the month is also flat, correcting from declines of between 0.1% and 0.2% in May, June and July.

Despite this, growth is still up on a year ago, with total housing growth up 3.2% on August 2019, and business lending up 2.9%.

Personal credit, however, was down 12.5% on the year.

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

Lender
Advertised rate Comparison rate* Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

FixedMore details
No ongoing feesFree redraw facility

Live-in Fixed Loan (Principal and Interest) 1 Year

No ongoing feesFree redraw facility
FixedMore details
NO UPFRONT OR ONGOING FEES

Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 3 Years

NO UPFRONT OR ONGOING FEES
FixedMore details

Fixed Rate Home Loan (Principal and Interest) 3 Years

FixedMore details

Tailored Home Loan Fixed (Interest Only in Advance) 2 Years

FixedMore details

Fixed Options Home Loan (Interest Only) 2 Years (LVR < 70%)

FixedMore details

Fixed Rate Home Loan (Interest Only) 4 Years (LVR > 80%)

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 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 January 26, 2022. View disclaimer.

New data reveals biggest neobanks

In the pointless neobank battle of 'my dad is bigger than your dad', August figures released today by the prudential regulator reveal Judo Bank is the biggest neobank by some metrics.

It has more than $1.6 billion in residential deposits and more than $2 billion in residential loans on its books, but does have more than $370 million in long-term borrowings on its balance sheet.

Meanwhile, 86 400 has $352 million in residents' deposits on its books, while Xinja has $468 million.

Even with 86 400's $49 million residential loan book, Xinja still holds more residential assets, despite closing off its savings account to new customers in March and having no home loans available.

Xinja did, however, launch a share trading platform in July, and lending could be on the cards soon as the bank is advertising for a 'Personal Loan Lender' position.

Volt Bank was a distant last, with $60 million in residents' deposits on its books, after having its savings account in 'beta' mode for more than nine months.

As for Up! Bank, it shares its banking licence with Bendigo and Adelaide Bank, so its statistics are bundled in with that institution. 


Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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