An increase in the size of the average home loan, in line with higher property values, has been the main reason for the growth in the value of new mortgage lending over the past year.

The latest ABS lending data show that the value of new housing loan commitments rose 3.1 per cent in March. This followed a 1.5 per cent rise in February and falls in January and December.

The A$27.6 billion of new lending was up 17.9 per cent over the 12 months to March 2024.

The ABS said this growth is due to the size of loans being approved, while the number of loans reaching the final commitment stage is “broadly similar” to a year ago. Average loan size in March was $607,963 – up 5.4 per cent over a year.

The value of new lending to owner occupiers was up 2.8 per cent month-on-month and up 11.8 per cent over 12 months.

New lending to investors was up 3.8 per cent month-on-month and up 31.1 per cent over 12 months.

The value of external refinancing fell 2.5 per cent to $16 billion month-on-month and was down 24.9 per cent over 12 months.

First home buyers borrowed $5.2 billion in March – an increase of 4.4 per cent over the month and 17.9 per cent higher over 12 months.

The latest Reserve Bank data show that lenders’ mortgage balances grew by 0.4 per cent in February and by 4.3 per cent over the 12 months to February.

Owner occupier loan balances were up 0.4 per cent month-on-month and 5 per cent over 12 months.

Investor loan balances rose 0.3 per cent month-on-month and rose 3 per cent over 12 months.