Home buyers took out the largest loans ever in December, according to the Australian Bureau of Statistics, when they borrowed an average of A$602,035 – up $6000 from November.
The ABS reported that the average owner occupier loan size rose from $511,280 at the start of the year – a 17.7 per cent increase, reflecting strong house price growth through the year.
The average loan size in New South Wales was $779,770 and in Victoria $630,412.
According to the latest ABS lending data, new lending for housing finance grew by 4.4 per cent in December, compared with the previous month, and by 26.5 per cent over the 12 months to December.
New lending to owner occupiers rose 5.3 per cent month-on-month and new lending to residential property investors rose 2.4 per cent.
Year-on-year, new lending to investors rose 73.9 per cent, with most of that growth occurring early in the year. New lending to owner occupiers was up 12.4 per cent over the year.
The value of external refinancing fell 0.6 per cent in December, reflecting higher fixed rates.
Reserve Bank lending data published on Monday show lenders’ mortgage balances increased by 0.7 per cent in December and by 7.4 per cent over the past 12 months. The annual growth rate is at its highest level since December 2015.
Owner occupier loan balances grew by 0.8 per cent in December and by 9.6 per cent over 12 months, while investor loan balances grew by 0.5 per cent in December and by 3.4 per cent over 12 months.
APRA data on the market published this week show Commonwealth Bank and NAB are growing their mortgage books above system, while ANZ and Westpac continue to fall behind.
CBA’s mortgage book grew 2.5 per cent over the three months to December, compared with system growth of 2.1 per cent over the same period. NAB’s book grew 3.2 per cent.
Westpac’s book grew 0.6 per cent over the three months, while ANZ’s grew 0.1 per cent.
Among other lenders, Macquarie Bank continues to lead the market with growth of 10.3 per cent over the three months to December. Citibank’s book grew 7.5 per cent, MyState Bank’s 7.4 per cent, Bank Australia’s 5.9 per cent, CUA’s 5.6 per cent and AMP Bank’s 4.8 per cent.