Data from the Australian Prudential Regulation Authority (APRA) found that at the end of December, the value of deferred home loans fell by $7 billion to $43 billion.

That's a significant drop from May, when home loan deferrals peaked at $192 billion.

It was a similar story for small business loans, with loan deferrals plunging from a peak of $56 billion to $6 billion in December, and down by $2 billion since November.

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

VariableMore details
Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
Online ExclusiveUp To $4K Cashback

loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
VariableMore details
Refinance OnlyApply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Refinance OnlyApply In Minutes

Unloan – Variable Rate Home Loan – Refinance Only

  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
VariableMore details
Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Unlimited Redraws

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

  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
VariableMore details
Unlimited RedrawsApply In Minutes
  • Low Deposit (<95% LVR) with No LMI required
  • Unlimited Redraw and additional repayments
  • No Application or ongoing fees
Unlimited RedrawsApply In Minutes

Sucasa – Ultra Low Rate (Variable) - <95% LVR - No LMI (New Purchases)

  • Low Deposit (<95% LVR) with No LMI required
  • Unlimited Redraw and additional repayments
  • No Application or ongoing fees
Important Information and Comparison Rate Warning

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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 February 27, 2024. View disclaimer.

According to Treasurer Josh Frydenberg, the current value of deferred housing loans is over 80% down from the peak in May.

Similarly, the value of deferred small business loans has plummeted by more than 90% since May.

“As more households and ­businesses resume loan repayments, banks are in an even stronger position to continue lending in support of the economic recovery by helping those wanting to buy a home, invest or grow their business," Mr Frydenberg said.

apra22

Source: APRA

By state, Victoria has the highest number of loans subject to deferral eligible for capital concession, with 2.8% of loans deferred compared with the rest of the country at 1.4%.

According to APRA analysis, more than 10% of home loans were deferred at the peak of the pandemic - that number has now fallen to 2%

It comes as the March deadline for loan deferrals fast approaches, though some of Australia's major banks have said they've stopped accepting new applications for mortgage deferrals.

Household lending strong

Home loan lending continues to surge as borrowers seek to take advantage of ultra low interest rates.

APRA's monthly authorised deposit-taking institution (ADI) statistics released today showed both owner occupied and investment loans increased.

apra

Source: APRA

"This is consistent with the continued broad-based increase in national house prices and market activity, driven by strong demand for detached dwellings," APRA said.

Commonwealth Bank data released today also shows that lending for housing continued to surge over the final months of 2020, with lending for renovations growing at an "extraordinary pace" largely thanks to the government's controversial HomeBuilder scheme.

Photo by Ian Branch on Unsplash





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