ABS lending data released Friday shows the value of new loan commitments rebounded for owner occupiers in November while investors let the floodgates open.
ABS data highlights the value of new loan commitments to investors rose 3.8%, reaching an all-time high of $10.1 billion in November.
This increase amounts to an 86.9% yearly change on new investor borrower-accepted loan commitments.
ABS head of Finance and Wealth Katherine Keenan said investor lending has grown for the past 13 months accounting for around one-third of the value of new housing loan commitments in November 2021.
"The previous investor lending peak in April 2015 accounted for 46% of new housing loan commitments," Ms Keenan said.
Increases in investor loan commitments were strongest in New South Wales up 7.8%, Queensland up 5.0% and Victoria up 3.6%.
Source: ABS
Owner-occupiers rebound
The total value of new loan commitments for housing rose 6.3% to $31.4 billion, backed by a 7.6% rebound for owner-occupiers following three months of falls.
"This rise was the first since May 2021 and the largest since January 2021," Ms Keenan said.
"Owner-occupier loan commitment increases were strongest in New South Wales, rising 9.6% and Victoria, rising 9.7% corresponding with restrictions easing in those states in October and November.”
Nationally, the average loan size for owner-occupier dwellings rose to an all-time high of $596,000.
First-home buyers bite the bullet before year's end
New loan commitments for owner-occupier first home buyers increased 1.9% in November, breaking a constant trend of declines since January 2021.
Yet the number of these commitments was 17.4% lower compared to a year ago, showing first-home buyers more broadly are willing to wait for signs of the property market cooling down.
"Victoria had the strongest rise of 12.3% in the number of owner-occupier first home buyer loan commitments," Ms Keenan said.
"The number of these commitments was 6.7% lower than a year ago, after falling from record highs seen earlier in the year.”
CommBank Senior Economist Kristina Clifton said while November showed a bounce, new lending is below its recent peak.
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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 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 January 17, 2022. View disclaimer.
Image by Maximillian Conacher via Unsplash.
