ANZ leaks more mortgage customers, loan deferrals double in a month

author-avatar By on October 01, 2021
ANZ leaks more mortgage customers, loan deferrals double in a month

Data shows ANZ lost another $730 million in owner occupier mortgages, while there was double the value in loans deferred in a month.

In total ANZ had on its books about $173.87 billion in owner occupier mortgages at the end of August, down from $174.6 billion, according to the latest APRA statistics.

This is despite other big four banks increasing their loan portfolio to owner occupiers by between one and three billion dollars.

While investor lending has remained fairly steady, this follows ANZ's leak of about $1 billion in owner occupier mortgages from June through July.

ANZ is reportedly not growing its mortgage book due to blown-out loan approval times as long as six weeks.

This was at a "level we weren't happy with", according to comments made by ANZ executive Mark Hand last month.

The latest data from PEXA also shows there were 590,461 new loans settled in the past 12 months, with the major banks collectively leading the charge.

Conversely, non-bank lenders leaked customers, down 22,500 collectively during the same period.

This could be attributed to the Reserve Bank's Term Funding Facility driving sharp loan deals for banks at the exclusion of non-banks.

Mortgage deferrals double

APRA data showed there was $11.9 billion worth of loans deferred at the end of August - up from $5.6 billion in July.

The percentage of the total Australian loan book deferred is up to 0.5% from 0.3%. 

For housing loans, 23,443 were deferred, amounting to $10.8 billion or 0.7% of total loans.

NSW made up the bulk of housing loans deferred, nearly doubling from 0.73% of the total state loan book in July to 1.39% in August.

Victoria's went from 0.18% to 0.43%.

However, this is significantly below levels seen in mid-2020, where more than one in ten loans were deferred to the value of more than $200 billion.

That said, APRA has lifted the threshold for deferral reporting to $50 million and 50 facilities in loan deferral, up from $20 million and 20 facilities in 2020.

The most notable absentee from APRA's institution-level data is ANZ.

Home loan 'ticking time bomb'

Following regulators' signals they will clamp down on the mortgage lending surge to keep Australia's finance sector stable, there are growing concerns any potential restrictions could target the wrong people.

"There is a very fine line between tightening lending standards for financial stability and taking away the opportunity for first home buyers to get into the market when they have a chance," said Brodie Haupt, CEO of digital lender WLTH.

"In the past, property investors were the usual suspects for inflated house prices, but the first home buyers are the ones flooding the market this time."

"In the end, informing new home buyers is key. It should be emphasised that we are in a low-interest environment at the moment, but it can't remain in the long-term."

Mr Haupt also pointed towards some of the challenges that home buyers could consequently face in the next few years should there be a 'credit crackdown'.

"The amount of credit growth outpacing a rise in household income is often referred to as a 'ticking time bomb' until interest rates inevitably increase," he said.

"There is talk of limiting how much banks can lend to borrowers with high debt-to-income ratios and high loan-to-valuation ratios, plus increasing interest rate servicing buffers, all to reduce the amount of debt in the country."

CommBank has already increased its serviceability buffer from 5.1% to 5.25%.


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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
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
VariableMore details
LIMITED TIME OFFER

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

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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%
VariableMore details
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
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
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^

Rates correct as of October 23, 2021. View disclaimer.


Photo by Mick Haupt on Unsplash

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): Great Southern Bank, 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.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

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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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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