Home loan values continue to grow in December

Peter Terlato 10 February 2017

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Back-to-back monthly rises in values and commitments.

The value of Australian home loans rose 0.8% to $33.198 billion in December, bolstered by a 1.7% jump in investment housing (fixed loans) to $13.210 billion.

Australian Bureau of Statistics (ABS) housing finance figures for December reveal owner-occupied housing commitment rose slightly (0.2%) month-on-month.

Owner-occupied housing commitments increased mildly (0.1%) to 54,362, the number of new dwelling purchase commitments rose 1.4% to 2,785, commitments for the purchase of established dwellings jumped 0.1% to 45,940, while dwelling construction commitments rose modestly, up 0.2% to 5,637.

Housing finance is getting back on track after months of significant falls in both values and commitments.

However, new research found most Aussie men would forgo their honeymoon in lieu of buying a house, while the majority of married women want a wedding ring around their finger before inking a mortgage.

The number of first home buyer commitments as a percentage of total owner-occupied housing finance commitments remained stable at 13.8% in December 2016.

The value of outstanding loans financed by Authorised Deposit-Taking Institutions (ADIs) jumped 0.7% month-on-month in December to $1,561 billion. Outstanding owner-occupied loans, financed by ADIs, increased 0.7% to $1,016 billion, while investment housing loan outstandings rose 0.6% to $545 billion.

Outstanding housing loans for banks rose 0.7% in December to $1,523 billion. Owner-occupied loans rose 0.7% to $987 billion and outstanding investment housing loans were up 0.6% to $536 billion.

Driven by a substantial increase in personal loan applications, overall demand for consumer credit in Australia rose sharply during the December 2016 quarter, according to the latest data.

Securing a home loan is likely the biggest investment a person will ever make but a new survey has found the overwhelming majority of Australians don't know their current home loan interest rate.

Buying or investing in property? Our home loan comparison guide can help you secure the best finance.

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