The latest data from the ABS reveals that, in seasonally adjusted terms, there was an increase in the number and value of home loans to owner-occupiers and an increase in the value of loans to investors over the month of August, following a rise in July. 

According to the ABS, 49,792 home loans to owner-occupiers were approved throughout the month of August – an increase of 1.8 per cent on the month prior. 

Mortgage Choice Chief Executive Officer, Susan Mitchell said, “The continued growth in home loan demand is consistent with the turnaround we are seeing in the housing market of late, particularly in the nation’s two largest markets, Sydney and Melbourne.”  

At a glance:

• Investor home loan demand increased 5.7 per cent over August
• Value of loans to investors was $4.8 billion
• Home loans for owner-occupiers was increased by 1.8 per cent over August

The ABS data showed an increase of 4 per cent in the total value of home loans written to owner-occupiers on the month prior, to $20.5 billion. The value of home loans to owner-occupiers (excluding refinance) rose 1.9 per cent in August. 

Investors drove the surge in home loan demand over August, with the ABS data revealing an increase of 5.7 per cent in the value of loans to investors (excluding refinance) over the month to over $4.8 billion. 

“The growth in demand from investors is unsurprising when you consider the many factors which may be positively impacting investor appetite. The result of the Federal Election took the potential removal of property tax concessions off the table. As a result, once cautious investors may have been encouraged to put their buying plans in action,” said Ms Mitchell. 

“Policy and pricing on investment loans are now much more favourable. The gap between investment principle and interest and investment interest only home loan pricing was significant but it has narrowed in recent times, as lenders who no longer have to meet investment lending benchmark caps are now aggressively competing for customers. “

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