Powered by MOMENTUM MEDIA
subscribe to our newsletter

Investment lending slumps in September

Demand for investor loans has dropped significantly since the introduction of differential pricing earlier this year.

Figures released by the Australian Bureau of Statistics this week show the value of investment housing commitments in September dropped by $1.24 billion, or 8.5 per cent, on a seasonally adjusted basis.

Comparison website RateCity analysed the new data and noted that it is the most significant drop in investor loan demand since differential pricing was introduced in middle of this year.

“ABS figures indicate that investor borrowing has really started to take a tumble,” RateCity’s Sally Tindall said.

“To put it into context, August’s month-on-month figures showed a drop of just 0.2 per cent or $36 million,” she said, adding that “differential pricing is here to stay”.

Advertisement
Advertisement

PROMOTED CONTENT


Research by RateCity shows that half of all lenders now offer different rates for investors and owner-occupiers, with a difference of up to 1.44 percentage points.

“The gap between investor and owner-occupier rates are continuing to widen with differences of up to 1.44 percentage points, up from 0.85 percentage points in September,” Ms Tindall said.

While there has been attention on banks lifting their rates across the board, RateCity highlighted that a number of lenders have actually been dropping their rates for owner-occupiers.

Investment lending slumps in September
mortgagebusiness

Latest News

The major bank will develop an integrated remediation plan on all activities related to risk governance and report to APRA each quarter as p...

The total value of new loan commitments for housing and the number of loans for the construction of new dwellings have reached record levels...

The recovery in Australian house prices continued in November, with CoreLogic stating that house values look set to surpass their pre-COVID ...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: What’s being done to support home building?

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.