Despite falling for another consecutive month, the drop in loan commitments appears to have eased slightly, after July saw a significant fall of 8.5%.

Katherine Keenan, head of finance and wealth at the ABS, said the value of new owner-occupier loan commitments fell 2.7% in August 2022, and the value of new investor loan commitments fell 4.8%.

"Although lending continued to fall from the high levels of June 2022, the value of loan commitments in August remained elevated compared to pre-pandemic levels," Ms Keenan said. 

"Owner occupier loans in August were 36% higher than February 2020, while investor loans were 70% higher."

There was a 10.4% rise in the number of new loan commitments to owner-occupier first home buyers, to 9,652 - the largest rise since August 2020.

However, the level still remains well below the January 2021 high of 16,330. 

Almost all states and territories saw an increase in demand, particularly in Victoria (up 11.9%), Queensland (up 14.3%) and Western Australia (up 13.9%).

"Anecdotal feedback attributed some of the August owner-occupier first home buyer increased demand to the 2022-23 First Home Guarantee." Ms Keenan said.

The value of borrower refinancing of owner-occupier housing loan commitments between lenders rose 2.8% in August, reaching a new record high of $12.8 billion. 

This shows borrowers are continuing to seek loans with lower interest rates amid the increase in the RBA cash rate in August. 

The average loan size for owner-occupier dwellings, including the construction and purchase of new and existing dwellings, fell at a national level in August - from $609,000 to $589,000.

Though it remained 23% higher than the figures seen in February 2020, the average loan sizes fell in every state - but rose slightly in both territories.

See more: Home loan statistics in Australia

Home loans for new dwellings at a two-and-a-half-year low

Lending for the construction of new homes fell 4.5% to its lowest level since March 2020.

Housing Industry Association economist Tim Devitt said the RBA is at risk of undoing the demand brought about by housing stimulus and removing the construction industry's "soft landing".

“If these trends are sustained, which is expected, then the 2.25 percentage point increase in the cash rate so far will have brought this pandemic building boom to an end," Mr Devitt said.

Personal Finance

The value of new loan commitments for fixed term personal finance saw a rise of 9.5% in August 2022.

Lending for the purchase of road vehicles also rose 17.7% following a 5.2% rise in July, continuing to recover to previous levels after a sharp fall in June.


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Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
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Important Information and Comparison Rate Warning

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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 . View disclaimer.

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