ABS loan data released on Friday shows the value of new loan commitments rebounded for homeowners in November as investors let the floodgates open.
ABS data highlights that the value of new loan commitments to investors rose 3.8% to a record high of $10.1 billion in November.
This increase is equivalent to an annual variation of 86.9% over nnew loan commitments accepted by investors and borrowers.
ABS finance and wealth manager Katherine Keenan said lending to investors had increased over the past 13 months, accounting for around a third of the value of new housing loan commitments in November 2021.
“The previous peak in investor lending in April 2015 was 46% of new home loan commitments,” Ms Keenan said.
Increases in loan commitments to investors were strongest in New South Wales up 7.8%, Queensland up 5.0% and Victoria up 3.6%.
Homeowners are bouncing back
The total value of new housing loan commitments rose 6.3% to $31.4 billion, supported by a 7.6% rebound for homeowners after three months of decline.
“This increase was the first since May 2021 and the largest since January 2021,” Ms Keenan said.
“Increases in homeowner loan commitments were strongest in New South Wales, up 9.6% and in Victoria, up 9.7% in line with the easing of restrictions in these States in October and November.”
Nationally, the average loan size for owner-occupied homes hit an all-time high of $596,000.
First-time home buyers are biting the bullet before the end of the year
New loan commitments for first-time homeowners rose 1.9% in November, breaking a steady downward trend since January 2021.
Still, the number of such commitments was 17.4% lower than a year ago, showing that first-time home buyers are more widely willing to wait for signs of a slowdown in the housing market.
“Victoria had the largest increase in first-time homeownership loan commitments at 12.3 per cent,” Ms Keenan said.
“The number of such engagements was 6.7% lower than a year ago, after falling from record highs earlier in the year.”
Kristina Clifton, senior economist at CommBank, saidNovember showed a rebound, new loans are below their recent peak.
“We expect affordability constraints, slow population growth and rising lending rates to result in a much weaker housing market in 2022 compared to 2021,” Ms Clifton said.
Buying an investment property or looking to refinance? The table below shows home loans with some of the lowest interest rates on the market for investors.
|Rate type||Gap||Redraw||Ongoing charges||The initial costs||LVR||Lump sum reimbursement||Additional refunds||Pre-approval|
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Low Rate Home Loan – Premium (Principal and Interest) (Investment) (LVR
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Smart Investor Home Loan (Principal and Interest) (LVR
- Possibility to add an offset of 0.10%
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Basic criteria: a loan amount of $400,000, variable, fixed, principal and interest (P&I) real estate loans with an LVR (loan-to-value) ratio of at least 80%. However, the “Compare mortgages” table allows calculations to be made on the variables selected and entered by the user. All products will list the LVR with the product and price list which is clearly published on the product supplier’s website. Monthly repayments, once the basic criteria are modified by the user, will be based on the advertised prices of the selected products and determined by the loan amount, repayment type, loan term and LVR as entered by the user. user/you. *The comparison rate is based on a loan of $150,000 over 25 years. Please note: this comparison rate is only true for this example and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate. Rates correct as of January 14, 2022. See disclaimer.
Image by Maximillian Conacher via Unsplash.
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