Strong demand for housing finance over the past year has been reflected in lenders’ balance sheets, which show the highest growth in mortgage balances for a number of years.
According to the latest Reserve Bank lending data, lenders’ mortgage balances grew by 0.7 per cent in June, compared with the previous month – the highest level of monthly growth since 2010.
Over the 12 months to June, lenders’ mortgage balance grew by 5.3 per cent – the highest annual growth since 2018.
Loans to owner occupiers have provided the bulk of this growth. Owner occupier mortgage balances were up 0.9 per cent month-on-month and 7.2 per cent over 12 months.
Investor mortgage balances were up 0.3 per cent month-on-month and 2 per cent over 12 months.
However, there has been a strong pick-up in investor mortgage balances, which were in decline this time last year. In June last year, investor mortgage balances were down 0.6 per cent on an annual basis.
According to APRA latest monthly ADI data, Commonwealth Bank, NAB and Westpac are all a little ahead of system for the month of June – all recording mortgage balance growth of 0.9 per cent.
Over 12 months, CBA’s book has grown 6.7 per cent, NAB’s 1.6 per cent and Westpac’s 2.3 per cent.
ANZ recorded zero growth in mortgage balance in June and has a fall of 0.1 per cent in the three months to June. Over 12 months, its book has grown 4.9 per cent.
Lenders recoding strong growth in June include Bank of China, with 3.7 per cent growth month-on-month, Bendigo and Adelaide Bank (up 1.6 per cent), HSBC (up 1.7 per cent), Macquarie Bank (up 2.5 per cent), MyState Bank (up 2.5 per cent).