Home loans values and commitments bounce back

Peter Terlato 10 August 2016

Housing finance home loans

Housing finance gets back on track.

Australian home loan values rose sharply between May and June 2016, up 2.3% to $32.578 billion.

Australian Bureau of Statistics (ABS) housing finance figures for June 2016 revealed the value of investor loans continues to rise, gaining 3.2% and totalling $11.785 billion.

After a 1% fall in May, the number of home loans issued for owner-occupied dwellings bounced back in June, rising 1.2% month-on-month to 57,609.

The amount of borrowers committed to buying established dwellings also rose in June, up 1% to 49,014.

Earlier this year in April, a scant rise in owner-occupied housing values couldn't offset a steep decline (-5%) in investment housing (fixed loans). However, the value of home loans issued for owner-occupied dwellings climbed in May and the value of investment housing grew 3.9% month-on-month.

First home buyer commitments rose 0.1% to 14.3% in June, a stark difference to March when lending to first home buyers fell to its lowest level since May 2004.

The number of finance commitments for the construction of dwellings for owner occupation rose 2.1% in June, following a fall of 2% in May.

The value of outstanding loans financed by Authorised Deposit-Taking Institutions (ADIs) was $1,510 billion, representing a 0.7% rise month-on-month in June. Outstanding owner occupied housing loans rose 0.9% to $976 billion, while outstanding investment housing loans saw a 0.4% to $534 billion.

Outstanding housing loans for banks rose 0.8% in June to $1,471 billion. Owner occupied outstandings ticked up 0.9% to $946 billion and outstanding investment housing loans increased 0.4% to $525 billion.

Are you considering buying a new home or property investment? Our home loan comparison tool can help you secure the right finance.

Picture: Shutterstock

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