Investor lending at an all time high: ABS

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on May 04, 2022 Fact Checked
Investor lending at an all time high: ABS

ABS data revealed the value of new housing loan commitments rose 1.6% to $33.3 billion in March 2022, fuelled by new investors.

The rise in March comes after February's fall of 3.5% after reaching a record high of $33.9 billion in January, according to data released today from the Australian Bureau of Statistics (ABS).

Rises in the value of owner-occupier loan commitments were reported in all states and territories, while investor lending rose 2.9%. 

The average owner occupier home loan value (including construction and the purchase of new and existing dwellings) rose $7,000 to $600,000.

ABS head of Finance and Wealth Amanda Seneviratne said following falls in January and February, the number of new loan commitments to owner-occupier first home buyers rose 4.2%, but still remains significantly lower than last year. 

"Owner-occupier lending was 32.8% lower than the near record high a year ago," she said.

"Reduced first home buyer lending over the past year partly reflects an unwinding of COVID-19 related incentives such as HomeBuilder."

"The value of new investor loan commitments reached a record high of $11.7 billion in March and was the key contributor to the rise in the value of new housing loan commitments."

With the exception of February 2022, the value of investor loan commitments has had monthly increases since November 2020.

In March, increases were reported for all states and territories with high proportional increases in Queensland (6.7%), South Australia (8.5%), Western Australia (5.9%), the Australian Capital territory (14.9%) and the Northern Territory (32.4%).

ABS Lending April22.png

First home buyers

In March 2022, the number of new loan commitments rose 4.2% at the national level for owner-occupier first home buyers (seasonally adjusted). 

New South Wales rose 12.5%, Queensland rose 5.9%, Western Australia rose 6.5%, Australian Capital Territory rose 44.2%, in Victoria rose 1.1%, in the Northern Territory rose 19.6%, and in South Australia rose 0.5%, while Tasmania fell 3.2%.

Personal finance loan commitments

The value of new loan commitments for fixed term personal finance fell 0.4% (-$10 million), ending consecutive monthly rises from September 2021. This was driven by a 2.2% fall in commitments for the purchase of road vehicles (-$29 million).


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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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Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

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