Home loan market hits $1.39tn

The total value of outstanding home loans written by banks and ADIs has surged to an all-time record of $1.39 trillion, according to the Australian Bureau of Statistics.

April housing finance data released by the ABS yesterday revealed the new record for the total value of loans, which comprises of a total of $908.8 billion in owner-occupier loans and $483.3 billion in investor loans.

The data also revealed strong monthly growth, with the total value of home loans written in April hitting a record of $32.7 billion, off the back of rises in both investor and owner-occupied loans – up 2.6 per cent and 3.1 per cent respectively.

First home buyer levels also inched higher, with the average loan size for first time buyers rising by $8,500 to $334,800 compared to a $9,700 rise for all owner-occupier housing commitments.

The ABS data also revealed that 53,951 home loans were approved in April, up one per cent from 53,442 in March – a month in which the number also rose by more than one per cent.

However, fixed-loan rates fell to 10.3 per cent as a proportion of new loans – their lowest level in half a decade.

Commenting on the figures, Mortgage Choice chief executive John Flavell said the April statistics demonstrate that demand for home loans is at its highest point since the first home owner boost was in place in 2009.

“Rates are sitting at all-time lows, which is encouraging all types of potential buyers to take the leap and purchase property,” Mr Flavell said.

However, he also anticipated that investor lending may “taper off” as banks and ADIs respond to requests from APRA.

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Aleks Vickovich

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