Housing loans rise modestly in October
There's also less credit card debt for Australian households.
Australia's banks and financial institutions saw moderate monthly rises in the value of both owner-occupied loans and housing investment, while credit card debt fell slightly, according to the latest data.
The Australian Prudential Regulatory Authority (APRA) revealed loans for owner-occupied housing increased a modest 0.69% month-on-month in October. Overall value rose from $963,745 million in September to $970,348 in October.
Loans for housing investment ticked up 0.50% month-on-month, from $530,547 million in September to $533,185 million in October.
Despite the rise in investment, building approvals slumped in October, continuing a five-month downward trend.
On top of this, housing stress is forcing many, particularly low-income earners, out of the rental market.
Commonwealth Bank of Australia (CBA) continues to hold the largest value of owner-occupied loans, rising 0.39% to $266,217 in October. Westpac Banking Corporation held the greatest value of loans for housing investment, increasing 0.64% to $140,186 in October.
Households deposited $815,708 to banks in October, up 0.18% from $814,241 the previous month.
Total deposits to all institutions was $2,015,250 in October, up 0.85% from $1,998,197 in September.
Household credit card debt fell marginally (0.06%), from $41,123 in September to $41,096 in October.
APRA's stats were revealed ahead of the Reserve Bank's (RBA) December rate decision next week.
Just 12% of experts surveyed by finder.com.au suggest rates may dip below 1.5% before January 2017.
Visit our dedicated RBA cash rate page for all the latest news, updates, tips and forecasts.
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