Loan Applications Rise End 2021

Owner-occupier Loan Applications rises in December 2021

Data released from the Australian Bureau of Statistics indicates new home loan applications rose in December 2021. It was indicated that it was 4.4 percent to a record high value of $32.8 billion (seasonally adjusted) in December 2021. – Read on, and you’ll find data regarding Investment Loan applications as well.

 “December’s rise was driven by a 5.3 percent rise in the value of new owner-occupier loan commitments.  This is the second consecutive monthly rise in owner-occupier lending and follows the falls seen from June 2021 through to October 2021” acting head of Finance and Wealth at the ABS, Amanda Seneviratne, said.

Loan Applications

The strongest rises in owner-occupier loan commitments were found to be in Western Australia, with the owner-occupier loan commitments up 7.1 percent.

The second strongest in was Victoria, up with 5.2 percent. And third was New South Wales, with the owner-occupier loan commitments up 3.0 percent.

The number of new loan commitments to first home buyers (owner-occupier) grew consecutively for the second month, up 1.3 percent to 11,778.

However, In December 2021 in seasonally adjusted terms for owner-occupied housing, the value of new loan commitments:

  • in the Northern Territory, fell 23.1% and
  • in the Australian Capital Territory fell 3.4%

Home Loan Applications

The increase in commitments was driven by Western Australia, which rose 11.8 percent, and Queensland, which rose 3.8 percent. New loan commitments to first home buyers fell 21.5 percent falls from February 2021 through to October 2021.

At a national level, the average loan size for owner-occupier dwellings rose to a record high of $602,000, an increase from November of $6,000. This includes construction and the purchase of new and existing dwellings.  The average loan sizes reached new highs in all states and territories, except in Queensland and Tasmania.

Investment  Loan Commitments

The total value of new investment property loan commitments rose 2.4 percent. That is a record high of $10.3 billion.

Investment Loan

Amanda Seneviratne said: “Investor lending has seen growth over the past 14 months and accounted for around one-third of the value of new housing loan commitments in December 2021. The previous investor lending peak in April 2015 accounted for 46 percent of new housing loan commitments,”

The strongest rises in investor loan commitments were in Victoria (up 3.4 percent), New South Wales (up 1.1 percent), and the Australian Capital Territory (up 10.4 percent). In all other states and territories, the investment property loan commitments fell.

Personal Finance Loan Commitments

In December 2021 the value of new loan commitments for fixed-term personal finance rose 0.7 percent (seasonally adjusted), This was driven by a 17.4 percent rise in lending for personal investment.

More information on this topic is available in Lending Indicators, Australia.

Source: The Australian Bureau of Statistics