Mortgage market takes a breather

John Kavanagh

After recovering in the second half of last year, demand for home loan finance has fallen away again over the past two months.
 
The ABS data show that the value of new housing loan commitments fell 3.9 per cent in January. This followed a 4.1 per cent fall in December.
 
The A$25.1 billion of new lending was up 8.5 per cent over the 12 months to January.
 
The value of new lending to owner occupiers was down 4.6 per cent month-on-month and but up 3.4 per cent over 12 months.
 
New lending to investors was down 2.6 per cent month-on-month but up 18.5 per cent over 12 months.
 
The value of external refinancing fell 5 per cent to $16.1 billion month-on-month and was down 19.5 per cent over 12 months.
 
The ABS said the withdrawal of cashback offers and other incentives for refinancers has probably had an impact on that segment of the market.
 
The number of new loan commitments to first home buyers fell 6.9 per cent in January, following an 8.9 per cent fall in December. At 8707, the number of first home buyer loans was up 4.4 per cent over 12 months.
 
Average loan size fell from $624,383 in December to $615,178 in January.
 
The latest Reserve Bank data show that lenders’ mortgage balances grew by 0.4 per cent in January and by 4.2 per cent over the 12 months to January.
 
Owner occupier loan balances were up 0.4 per cent month-on-month and 4.8 per cent over 12 months.
 
Investor loan balances rose 0.2 per cent month-on-month and rose 3.1 per cent over 12 months.
 
APRA figures for January show that with system growth at 4.7 per cent annualised over the three months to December, ANZ leads the big banks with growth of 7.1 per cent annualised over the three months, Westpac grew 4.5 per cent annualised, NAB 4.1 per cent and Commonwealth Bank 3.1 per cent.
 
Bank of Queensland and AMP Bank had books in runoff over the three months to January.
 
Judo Bank and ING had the highest growth rates over the three months to January – Judo up 11.2 per cent annualised and ING 11.1 per cent. 
 
Macquarie Bank, the market pacesetter for years, grew its book by 9.2 per cent annualised over the three months.