The value of Australian housing loans grew in July 2017: ABS
Loans for owner-occupiers drove a 0.1% increase in Australian housing finance while investment lending fell.
The latest figures from the Australian Bureau of Statistics (ABS) show a modest rise in housing finance commitments in July, with owner-occupied loans contributing most of the growth.
The total value of dwelling commitments reached $33 billion (trend estimate) in July, which is a 0.1% increase compared to the previous month.
In trend terms (the most accurate measurement recommended by the ABS), owner-occupied lending increased by 1.7% or $153 million. Owner-occupied finance grew in most sectors: purchase of new dwelling, established dwellings and construction of dwellings.
Investment lending, however, fell by 1.0% ($121 million) in July across all sectors.
Owner-occupied finance: a closer look
The 0.6% rise in owner-occupied lending in July follows on from a 0.5% increase in June.
Key observations from the ABS figures include the following:
- The average loan size for all owner-occupiers fell $5,000 to $370,500.
- The average first home buyer's loan grew $4,000 to $321,800.
- Purchase of new dwellings rose 2.0% for owner-occupiers.
- Construction of new dwellings for owner-occupiers rose 2.0%.
- Loans for refinancing owner-occupiers fell 1.0% in July.
Bank and non-bank lending
Owner-occupier lending increased for both bank and non-bank lending in July.
- Bank lending for owner-occupier loans grew 0.6%.
- Non-bank lending grew 0.7%.
Outstanding home loan debt continues to rise
The ABS also reported a rise in the value of outstanding housing loans (how much is owed by Australian borrowers) in July 2017.
- The value of outstanding housing loans financed by non-banks rose by $6 billion to $1,613 billion.
- For housing loans issued by banks, the outstanding value rose $5 billion, to a total of $1,052 billion.
While the overall growth in housing finance was only 0.1% for July, dwelling approvals increased by 0.7% in the same period.
If you're looking for advice on how much you should borrow for a home loan, you can check out our guide to what's affordable.