Home loan growth peaks in four years

Reserve Bank data released on Tuesday shows 12-month housing growth to October 2021 reached 6.7% – the highest rate since July 2017.

Year-over-year growth in homeowners’ mortgage credit was 9.0%, the highest growth rate since August 2016.

This despite data on ABS loans showing that homeowner loans are gradually declining.

Growth in investor credit at the end of the twelve months increased 0.2 percentage point to 2.6%, the highest since February 2018.

There are currently mixed signals in the market, with APRA announcing a tightening of serviceability in October and effective in November, with a hike in fixed mortgage rates.

The Reserve Bank’s cash rate is also expected to rise ahead of its initial forecast for 2024, and the CBA has forecast house prices to fall by up to 10% in 2023.

As a result, last week SQM Research estimated that the rise in house prices would moderate in mid-2022, due to falls in Sydney and Melbourne.

However, Propertyology research chief Simon Pressley said household financial foundations were still strong.

“Ultimately, however, much of the growth in credit over the past two years is a release from pent-up demand created by APRA which has cut credit from beejezus over the past four years,” he said. Mr Pressley told Savings.com.au Tuesday.

“When looking at this issue of credit growth, the likes of ABS, RBA and economists often forget that Australia typically adds 350,000 people and 200,000 more homes every year.

“More people, more homes should always mean more credit – otherwise we would be in a recession and lose jobs.”

ANZ slows mortgage leakage

The latest data from APRA shows that ANZ had $ 260.356 billion in occupied housing and investment mortgages at the end of October, about $ 66 million less than at the end of September.

That’s much slower than previous leak rates, with the bank losing $ 1 billion in mortgage customers in a month – where refinances and discharges have exceeded the rate on new loans.

The ANZ mortgage leak has been well documented and has been attributed to slow application and approval times, particularly through brokerage channels where some clients wait up to six weeks.

ANZ Director Mark Hand previously said this was “a level we weren’t happy with.”

CommBank is generally leading the growth rate among the majors, increasing its homeowner loan portfolio by just about $ 3 billion in the last month on record.


Buying a home or looking to refinance? The table below presents home loans with some of the lowest interest rates on the market for homeowners.


Rate type Gap Redraw Ongoing charges The initial costs LVR Lump sum reimbursement Additional refunds Pre-approval

Variable More details

Smart Booster real estate loan at variable discount rate – 2 years (LVR
  • Fast turnaround times, can meet a 30 day settlement
  • For purchase and refinancing, minimum deposit of 20%
  • No ongoing or monthly fees, add compensation for 0.10%

Variable More details

Low rate home loan – Premium (principal and interest) (owner occupied) (LVR
  • No upfront or ongoing fees
  • 100% clearing account
  • Additional refunds + reprint services

Fixed More details

1-year fixed real estate loan (capital and interest) (LVR
  • Simple digital application process
  • Market-leading app to help you pay off your loan sooner
  • No ongoing charges

Variable More details

Nano Home Loans Variable Owner Busy, Principal and Interest (Refinancing Only)

  • Refinancing only. Fast online application
  • No Nano fees. 100% free sub-account clearing
  • Mobile app, Visa debit card and instant payments

Photo by Robert Linder on Unsplash

The entire market was not taken into account in the selection of the above products. On the contrary, a small part of the market has been envisaged. Products from some vendors may not be available in all states. To be considered, the product and the price must be clearly published on the website of the supplier of the product. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au and Performance Drive are part of the Savings Media group. In the interest of full disclosure, the Savings Media Group is associated with the Firstmac Group. To learn more about how Savings Media Group handles potential conflicts of interest, as well as how we are paid, please click on the links on the website.

Priscilla C. Carnegie