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%.


Advertisement

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

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • 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%
UNLIMITED REDRAWSSPECIAL OFFER

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%
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • 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
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.

Variable Home Loan (Principal and Interest)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services

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. 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 May 29, 2022. 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. 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.

Latest Articles

author-avatar
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 strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

Collections:

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree
to the Savings Privacy Policy