Only one type of lending has increased this January
ABS figures show lease finance was the only lending market to show an increase from December 2016.
The latest lending finance figures from the Australian Bureau of Statistics (ABS) have shown a significant increase in leasing finance from December 2016 to January 2017. Lease finance increased 10.2% in January, with seasonally adjusted estimates showing an increase of 73.5%.
This follows a steady increase of leasing over the past few months, with the most recent drop being recorded as a seasonally adjusted decrease of 11.8% October 2016.
Housing finance for owner occupation and personal finance increased slightly by 0.5% and 0.4% respectively. However, when seasonally adjusted, housing finance dropped 0.2% and total personal finance commitments fell 2.8%.
Commercial finance dropped 0.9% from the previous month and the seasonally adjusted estimates show a more significant fall of 7.1%.
Commercial finance had been growing steadily from September last year, only taking one dip (seasonally adjusted) of 10.1% in December 2016. However, while numbers are relatively steady, the availability of finance and the banks' treatments of small businesses has come under the spotlight at the recent parliamentary inquiry into banking.
ASIC and the ASBFEO have also come together to combat unfair contract terms for small businesses.
Not sure whether buying or leasing is right for you? Find out in our guide.
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