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.

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. 

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Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

• The big four banks are: ANZ, CBA, NAB and Westpac
• The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
• The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.

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.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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