Home loan values keep rising in February

Posted: 10 April 2017 12:16 pm

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Four straight months of rises in values and commitments.

The value of Australian home loans rose 0.4% to $33.530 billion during February, culminating in the fourth consecutive month of gains.

Australian Bureau of Statistics (ABS) housing finance figures for February reveal the value of owner-occupied housing commitments rose slightly (0.2%) month-on-month.

The number of owner-occupied housing commitments also increased (0.3%) to 55,070, while the number of construction commitments declined (-0.1%), down to 5,618.

Commitments for the purchase of new dwellings remained flat at 2,761, while commitments for the purchase of established dwellings rose (0.4%) to 46,691.

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

However, the number of first home buyer commitments as a percentage of total owner-occupied housing finance commitments fell to 13.3% in February from 13.4% in January.

New research found one third of potential first home buyers would be unlikely to buy if interest rates rise.

The value of outstanding loans financed by Authorised Deposit-Taking Institutions (ADIs) jumped 0.4% month-on-month in February to $1,574 billion. Outstanding owner-occupied loans, financed by ADIs, increased 0.5% to $1,022 billion, while investment housing loan outstandings rose 0.3% to $551 billion.

Outstanding housing loans for banks rose 0.4% in February to $1,535 billion. Owner-occupied loans rose 0.5% to $992 billion and outstanding investment housing loans were up 0.3% to $543 billion.

Despite rising property prices across Australia's capital cities, the average balance on loans isn't growing, meaning the risk of mortgage stress hasn't increased.

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

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