home-loan-rise
Image – Canva
  • New loan commitments for housing rose 4.4%, to a record high value of $32.8 billion
  • Rise driven by a 5.3% rise in the value of new owner-occupier loan commitments
  • Is the second consecutive monthly rise in owner-occupier lending

New loan commitments for housing rose 4.4% to a record high value of $32.8 billion (seasonally adjusted) in December 2021, according to the latest data released from the Australian Bureau of Statistics (ABS).

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.”

Owner-occupier lending rose in December

 

owner-occupier-lending-rose-in-december
Source: ABS, owner-occupier lending rose in December 1/02/2022

The strongest rise in owner-occupier loan commitments was:

  • Victoria (+ 5.2%)
  • New South Wales (+ 3.0%)
  • Western Australia (+ 7.1%).

The number of new loan commitments to owner-occupier first home buyers grew for the second consecutive month, up 1.3% to 11,778. WA and Queensland drove the increase, which rose 11.8% and 3.8% consecutively.

New loan commitments to owner-occupier first home buyers fell 21.5% through the year.

Australia

At the national level, the average loan size for owner-occupier dwellings (which includes construction and the purchase of new and existing dwellings) rose to a record high of $602,000, an increase from November of $6,000.

Average loan sizes reached new highs in all states and territories except Queensland and Tasmania.

Investors

The total value of new investor loan commitments rose 2.4%, a record high of $10.3 billion.

Ms Seneviratne said, “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. The previous investor lending peak in April 2015 accounted for 46% of new housing loan commitments.”

The strongest rises in investor loan commitments were:

  • VIC (+ 3.4%)
  • NSW (+ 1.1%)
  • Australian Capital Territory (+ 10.4%)

All other states and territories fell.

Personal finance loan commitments

The value of new loan commitments for fixed term personal finance rose 0.7% (seasonally adjusted) in December 2021, driven by a 17.4% rise in lending for personal investment.

New loan commitments, personal fixed term loans (seasonally adjusted), values, Australia – larger purposes

new-loan-commitments
Source: ABS

New loan commitments, personal fixed term loans (seasonally adjusted), values, Australia – smaller purposes

small-new-loan-commitments
Source: ABS


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