ABS data released Friday shows the total value of owner occupier home lending was just under $20 billion in April, representing a 12.8% decline on the year, and 7.3% down on the month in seasonally adjusted terms.
For investors, total home lending reached just over $11 billion, representing a 37.1% increase compared to April 2021, and a 4.8% decline over the month.
ABS head of finance and wealth Katherine Keenan said these represented the largest monthly falls since May 2020 when Australia was in the throes of the first Covid lockdown.
"Lenders attributed the falls to a softening housing market, as well as the close proximity of Easter and ANZAC day public holidays, which softened borrower demand and limited loan processing more than would usually occur in the month of April," Ms Keenan said.
The average loan size rose 1.9% at the national level for owner occupiers, up from $600,000 to $611,000, but the ABS attributes that to a larger decline in the number of loan commitments relative to the value.
ANZ economists expect the declines in home lending to continue as inflation and interest rate rises affect borrowing capacity, with wages growth unable to keep pace.
National home values are already falling, led by declines in Sydney and Melbourne, with some pundits tipping 10-15% property price declines on average.
A recent CommBank survey shows most home owners are already taking steps to weather rate rises, while the prudential regulator chairman said home lending may no longer be "as safe as houses".
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 | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
