New record level of lending to end 2021

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on February 01, 2022 Fact Checked
New record level of lending to end 2021

New loan commitments for housing rose 4.4% to a record high value of $32.8 billion in December according to ABS data.

The ABS Lending Indicators report showed the number of new loan commitments to owner-occupier first home buyers grew for the second consecutive month, up 1.3%.

The strongest rises in owner-occupier loan commitments were Victoria (up 5.2%), New South Wales (up 3.0%) and Western Australia (up 7.1%).

ABS' acting head of finance and wealth Amanda Seneviratne said December’s rise was driven by a 5.3% rise in the value of new owner-occupier loan commitments.

"This is the second consecutive monthly rise in owner-occupier lending and follows the falls seen from June 2021 through to October 2021," she said. 

Loans to first home buyers also rose 1.3%, the second consecutive monthly rise after falls from February 2021 through to October 2021.

In Western Australia first home buyer loan commitments rose 11.8%; Queensland, 3.8%; Tasmania, 21.6%; Victoria, 1.0%; and South Australia, 0.6%.

Investor lending also rose 2.4%, reaching $10.3 billion in seasonally adjusted terms, surpassing the record set the previous month.

"Investor lending has seen growth over the past 14 months and accounted for around one third of the value of new housing loan commitments in December 2021," Ms Seneviratne said.

"The previous investor lending peak in April 2015 accounted for 46% of new housing loan commitments."


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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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