Key takeaways
The value of new lending reached $30.4 billion in August, the highest since May 2022
Investors continue to set the pace with a total of $11.71 billion loans settled in August, the second highest value of investor lending in the monthly ABS records.
Average national owner-occupier loan size fell in August, yet Queensland and Tasmania bucked the national trend with loan sizes in these states increasing month-on-month.
Existing borrowers have refinancing fatigue, with the value of loans switched down by almost $39 billion over last year compared to the 12 months prior.
The total value of new home loans approved in the month of August was $30.38 billion – just 1.0 per cent higher than was recorded the previous month.
Growth in the month was again driven by investor lending, up $164.7 million, or 1.4 per cent, according to ABS Lending Indicator data released today. Investor lending in August was just 0.98 per cent lower than the record high in January 2022.
Owner-occupier lending increased by $122.9 million, or 0.7 per cent in August, in seasonally adjusted terms.
Value of new home loans approved in August 2024
| Value | Monthly change | Year-on-year change | |||
| TOTAL | $30.38 billion | +$287.6 million +1.0% |
+$5.68 billion +23.0% |
||
| Owner-occupier | $18.67 billion | +$122.9 million +0.7% |
+$2.69 billion +16.8% |
||
| Investor | $11.71 billion | +$164.7 million +1.4% |
+$2.99 billion +34.2% |
||
Source: ABS Lending Indicators August 2024, released 4 Oct 2024, seasonally adjusted data.
First home buyer numbers fall again
Once again, first home buyers failed to crack the 10,000 new loans mark in August, with just 9,869 new mortgages settled in the month – 147 fewer than in July – a trend that is set to stick around, particularly as investors continue to strengthen their foothold in the market.
Number and value of new owner-occupier first home buyer loans in August 2024
| Amount | Monthly change | Year-on-year change | |||
| Number of loans | 9,869 | -147
-1.5% |
+832 +9.2% |
||
| Value of loans | $5.33 billion | -$20.8 million -0.4% |
$804.0 million +17.8% |
||
Source: ABS Lending Indicators August 2024, released 4 Oct 2024, seasonally adjusted data.
Refinancing drops again in August
The total value of refinancing dropped $509.8 million, or -3.1 per cent in August, after rising in July.
Overall, refinancing was down $3.67 billion, or -18.6 per cent compared to the same time last year.
Owner-occupiers showed the biggest slump in refinancing, down 25.1 per cent year-on-year.
Value of loans refinanced in August 2024
| Monthly change | Year on year | |||
| $16.08 billion | -$509.8 million -3.1% |
-$3.67 billion -18.6% |
||
Source: ABS Lending Indicators August 2024, released 4 Oct 2024, seasonally adjusted data.
New loan sizes drop nationally, except Queensland and Tasmania
The average new owner-occupier mortgage in Australia is now $636,208 – a 0.7 per cent drop in August.
However, the average loan size across Australia is still $51,301, or 8.8 per cent, higher compared to a year ago.
Queensland’s average new loan size rose to $603,988 – the highest on record, and the first time above $600,000.
Average new loan sizes - owner-occupier mortgages
| Av. new loan size | Monthly change | Year-on-year
(Aug 23 vs Aug 24) |
|
| Australia | $636,208 | -$4,790
-0.7% |
$51,301
8.8% |
| NSW | $771,422 | -$11,494
-1.5% |
$49,290
6.8% |
| VIC | $616,877 | -$88
-0.01% |
$26,427
4.5% |
| QLD | $603,988
Highest on record |
$5,131
0.9% |
$76,525
14.5% |
| SA | $555,934 | -$5,093
-0.9% |
$65,956
13.5% |
| WA | $552,154 | -$281
-0.1% |
$76,576
16.1% |
| TAS | $467,057 | $23,353
5.3% |
$3,364
0.7% |
| NT | $416,667 | n/a | n/a |
| ACT | $613,612 | n/a | n/a |
Source: ABS lending indicators
Average national new owner-occupier loan size since the start of the RBA hikes
Source: ABS lending indicators
Fixing flatlines
The proportion of borrowers opting for a fixed rate is sitting at 2.0 per cent August, a small increase from 1.9 per cent in July.
Just $1.1 billion worth of loans were fixed in August, out of the $54.9 billion worth of new and refinanced loans approved in the month of August.
Proportion of loans opting for a fixed rate since the start of the RBA hikes
RateCity.com.au money editor, Laine Gordon, said:
“Lending to property investors has reached the highest level since January 2022, far outpacing new lending to first home buyers.”
“If you thought investors were out of the market, think again. These figures from the ABS show the total value of lending to investors was just shy of 1 per cent below the peak, before the first RBA hike,” she said.
“While investors make their comeback, many would-be first home buyers have had their hands tied by rising rates and property prices, clocking in just 9,869 new loans in August.
“Queensland’s average new loan size shot up above $600,000 for the first time on record, joining NSW, Victoria and ACT in that value range.
“While fixing remains in the doldrums, accounting for just 2 per cent of new loans settled in August, lenders continue to put competitive fixed offers on the table,” she said.
