Mortgage lending surge continues

John Kavanagh

The value of new mortgage commitments rose 10.5 per cent in January, with new loans to owner occupiers up 10.9 per cent and loans to investors up 9.4 per cent, according to the latest Australian Bureau of Statistics figures.

New lending to first home buyers was up 10.1 per cent in January and up 73.2 per cent over 12 months.

Growth in lending to first home buyers is at its highest level since 2009, when the first home owner grant was increased in response to the financial crisis.

Total new mortgage commitments of A$28.7 billion in January were up 44 .3 per cent over 12 months.

Since the HomeBuilder grant was introduced in June last year, there has been a record rise in the value of construction loan commitments. The value of new lending for the construction of dwellings was up 141 per cent year-on-year.

The HomeBuilder grant was reduced at the start of the year, when the grant was cut from $25,000 to $15,000, and will end at the end of this month.