Property investor lending falls to all-time low
Regulatory activity is beginning to significantly impact the housing market, new figures show.
Regulatory activity is beginning to significantly impact the housing market, new figures show.The AFG Mortgage Index has found investor lending has been curbed by regulatory tightening.
“Today’s results paint a very different picture from this time last year. Regulator-led tightening of investor lending has led to a further drop in investor volume and they are now sitting at an all-time low of 29% of the market,” AFG chief executive David Bailey said.
Bailey said the retreat of investors was also evident in a growing average loan size.
“The national average home loan is now sitting at an all-time high of $491,000. This increase can be explained by the fact that people generally spend more for their primary place of residence than they do for an investment property,” Bailey said.
Buyers looking to upgrade their property now account for 41% of the market, the AFG figures revealed. Refinancing, meanwhile, fell to 25% of the home loan market. Again, Bailey put the shift down to the shifting regulatory landscape.
“This is also likely to be a reflection of the lack of lending options on the table for investors wanting to refinance, as lenders pull back from the investor market to meet regulatory demands,” he said.
Latest home loans headlines
- Mortgage rate hikes continue, with UBank and Virgin Money raising some rates by 20 basis points
- Ask Finder: Can I get a mortgage offset account in my business’s name?
- CoreLogic’s December figures confirm 2018 was a very rough year for the Australian property market
- APRA to remove interest-only home loan speed limits
- All of December 2018’s out-of-cycle rate changes
Image: Shutterstock
