The number of new home loans for people either buying existing homes or building new homes to live in rose 2.6% between November and December last year to 58,552, the highest level in almost seven years. 

A record 20,911 home loans were refinanced, a 4.4% increase.

However, investment housing commitments fell 2.4% during the month, suggesting the banks' tighter lending rules are beginning to bite.

In the month of December, a record $23.8 billion was advanced to borrowers by lenders to buy or build a home, up 24.6% on the same time last year, according to Craig James, CommSec's Chief Economist.

Housing finance commitments, where the funds are approved but not necessarily used yet, are a good indication of future activity in the property market, said James, suggesting that the outlook for property, both for newly constructed and already existing dwellings, remains robust.