The value of home loans continues to slide

Peter Terlato 10 June 2016

Big banks home loan exposure a perpetual concern

Investor loans decline steeply, hitting an almost two-year low.

Aussie home loan values fell 1.8% to $32 billion between March and April 2016, in response to a further softening in investor activity, according to new data.

Australian Bureau of Statistics (ABS) housing finance figures for April 2016 revealed the value of investor loans was at its lowest monthly total since June 2014.

A scant rise of 0.1% to $20.7 billion in owner-occupied housing values couldn't offset the steep 5% decline to $11.29 billion in investment housing (fixed loans).

Last month housing finance fell slightly, while lending to first home buyers fell to its lowest level since May 2004.

However, the future looks a little brighter with the number of home loans issued for owner-occupied dwellings rising 1.7% month-on-month to 57,576.

Borrowers purchasing established dwellings also rose 1.3% in April to 49,129.

There was a 3.3% boost to 2,594 of loans relating to the purchase of new dwellings, while loans for the construction of dwellings increased 4.4% to 5,853.

The number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 14.4% in April from 14.2% in March.

The value of outstanding loans financed by Authorised Deposit-Taking Institutions (ADIs) was up 0.5% month-on-month in April to $1,490 billion. Outstanding owner occupied housing loans, financed by ADIs, also increased 0.7% to $960 billion and investment housing loan outstandings rose 0.2% to $530 billion.

Outstanding housing loans for banks rose 0.5% in April to $1,448 billion. Owner occupied outstandings jumped 0.7% to $927 billion and outstanding investment housing loans increased 0.2% to $521 billion.

If you're thinking of buying a new home or investing in property, our home loan comparison tool can help you secure the best finance.

Picture: Shutterstock

Ask a Question

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the privacy policy, receive follow up emails related to and to create a user account where further replies to your questions will be sent.

Ask a question