This comes as ABS lending indicator data released on Friday revealed both owner occupiers and investors saw significant dips in refinancing levels throughout April, with total refinancing across the housing sector falling 9.2% to $19.3 billion.

Alongside owner occupiers, investors were less inclined to refinance in April, with the value of external refinances falling 10.4% to $6.3 billion.

Over the past couple of months, many lenders have announced their cashback offers will come to an end, including three of the four major banks.

Overall the appetite for new home loans declined in April, with ABS figures detailing a 2.9% decline to $23.3 billion, after a 5.3% rise in March

ABS Head of Finance Statistics Mish Tan noted the value of new owner-occupier loan commitments fell 3.8% to $15.4 billion in April, while the value of new investor loan commitments fell 0.9% to $7.9 billion.

NAB Head of Market Economics Tapas Strickland said the decline in lending is consistent with NAB's view that the reduction in borrowing capacity from higher rates will hamper the sustainability of the recent rebound in dwelling prices.

"[NAB] forecast a further fall in dwelling prices of around 3.5% for a peak to trough decline of around 12%," Mr Strickland said.

Further, the ABS revealed the number of new owner-occupier first home buyer loan commitments fell 0.9%, despite a rise of 16.5% in March.

Major bank economists were well and truly off the mark, with Westpac anticipating a 3.0% increase in housing finance in April, while ANZ had forecast a 2.0% increase.

CommBank economists were the only to expect a retraction in housing finance, forecasting a 1.0% decline in April. 

CommBank Head of Australian Economics Gareth Aird said home prices rose solidly in May, however this lift in home prices is not due to an increase in the demand for credit. 

"New lending for homes, excluding refinancing, fell by 2.9% in April compared to the consensus forecast for a lift of 2.0%," Mr Aird said.

"Stronger than anticipated population growth has caused vacancy rates to drop and rents to surge around the country.

"This dynamic lies at the heart of the turning point in Australian property prices."


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.

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
6.04% p.a.
6.06% p.a.
Principal & Interest
Featured 4.6 Star Customer Ratings
  • No monthly or ongoing fees
  • Unlimited free redraw
  • No application fee
5.99% p.a.
5.90% p.a.
Principal & Interest
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
Principal & Interest
Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
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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