Australian home owners owe $1 trillion to banks
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Jun 1, 2016
Australian home owners owe $1 trillion to banks
Owner-occupier home loans exceeded $1 trillion for the first time in April, says the Reserve Bank.
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Image by Sephelonor via Pixabay
Owner-occupier housing debt rose 0.5% in April to stand 7.3% higher than a year ago, lifting total owner-occupier housing debt to $1.005 trillion, says the Reserve Bank of Australia.
The annual growth rate was the fastest since September 2010, according to Craig James, chief economist, CommSec.
The data shows the value of homeowner debt is now eight times the level is was 21 years ago.
While lending to home owners is growing strongly, lending to investors is waning.
The RBA data shows investor housing finance rose 0.3% in April to stand 6.5% higher for the year, the slowest growth in 31 months, according to James. Total investor home loans amounted to $551 million in April.
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