Powered by MOMENTUM MEDIA
realestatebusiness logo

Subscribe to our newsletter

Mortgage market begins to rebalance

Housing finance data for July shows signs that the Australian mortgage market is rebalancing in response to recent regulatory changes and differentiated pricing.

The Australian Bureau of Statistics figures show that investor home loans rose slightly by 0.5 per cent in July following a 0.5 per cent fall in June.

Meanwhile, owner-occupied housing finance continues to gather momentum, lifting marginally in July by 0.3 per cent.

“July housing finance data provided further evidence that investment lending is slowing as it rose only 0.5 per cent after a 0.5 per cent fall in June,” AMP Capital chief economist Shane Oliver said, “and this was before the APRA measures really started to impact.

“Meanwhile lending to owner-occupiers rose strongly for the second month in a row,” he said. “It looks increasingly like the property lending market is starting to become more balanced.”

Advertisement
Advertisement

Westpac senior economist Matthew Hassan said the July housing finance approvals data were largely in line with expectations.

"The number of owner-occupier approvals was up 0.3 per cent over the month versus expectations of a 0.8 per cent gain,” he said.

“In effect both owner-occupier and investor lending was largely unchanged – the former following a fairly flat year and the latter following a sharp rise over the previous 12 months.”

Mr Hassan said the next few months are likely to get considerably more interesting with multiple factors at play including sharply weaker buyer sentiment amongst owner-occupiers through August to September and the added complication of tighter lending criteria and increased mortgage rates for investors following APRA’s macroprudential measures.

 

Mortgage market begins to rebalance
mortgagebusiness

Latest News

The brokerage has teamed with the fintech, for the launch of a new app that will let borrowers compare pricing and environmental impact acro...

The desire to secure a mortgage has collapsed across the country, according to a new analysis from Equifax. ...

The Reserve Bank will be closely watching how households respond to higher rates as it decides its next move, ANZ senior economists have sai...

VIEW ALL

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

What is the maximum proportion of income borrowers should use to service a mortgage?

Website Notifications

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