Home loan lending growth hits four year high

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on November 30, 2021 Fact Checked
Home loan lending growth hits four year high

Reserve Bank data released Tuesday shows 12-month ended housing growth to October 2021 hit 6.7% - the highest rate since July 2017.

Twelve-month ended owner occupier housing credit growth was 9.0% - the highest rate of growth since August 2016.

This is despite ABS lending data indicating owner occupier lending is tapering off.

Twelve-month ended investor credit growth increased 0.2 percentage points to 2.6% - the highest since February 2018.

There are mixed signals in the market presently, with APRA announcing serviceability tightening in October and effective November, with fixed home loan rates increasing.

The Reserve Bank cash rate is also tipped to increase before its initial 2024 guidance, and CBA has tipped house price falls of up to 10% in 2023.

As a result, last week SQM Research tipped property price rises to ease in mid-2022, led by falls in Sydney and Melbourne.

However Propertyology's head of research Simon Pressley said households' financial foundations are still solid.

"Bottom line though, much of the credit growth over the last two years is a release of pent-up demand created by APRA squeezing the beejezus out of credit over the previous four years," Mr Pressley told Savings.com.au on Tuesday.

"When considering this credit growth stuff, the likes of ABS, RBA and economists often forget that Australia generally adds an extra 350,000 people and 200,000 extra dwellings each year.

"More people, more dwellings should always mean more credit - if not, we’d be in recession and losing jobs."

ANZ slows mortgage leak

The latest APRA data shows ANZ held $260.356 billion in owner occupied and investment housing mortgages at the end of October - about $66 million less than at the end of September.

This is much slower than previous rates of leakage, with the bank at one stage leaking $1 billion in mortgage customers in a month - where refinances and discharges outpaced the rate of new lending.

ANZ's mortgage leak has been well documented, and has been attributed to slow application and approval times, especially through broker channels where some customers are waiting up to six weeks.

ANZ executive Mark Hand previously said this was a "level we weren't happy with".

CommBank generally leads the rate of growth among majors, growing its owner occupier loan book by about $3 billion alone over the past recorded month.


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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%)

  • 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%
LIMITED TIME 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%
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
FixedMore details
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

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

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
REFINANCE IN MINUTES, NOT WEEKS

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

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
VariableMore details
ZERO APPLICATION FEES

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

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
ZERO APPLICATION FEES

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

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees

Rates correct as of January 17, 2022. View disclaimer.


Photo by Robert Linder 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.

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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 is passionate about breaking down complex financial topics for the everyday consumer.

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