The value of total resident loans and finance leases reached just under $ 3 trillion in October, and home loans to $ 1.9 trillion, according to new statistics from APRA.
Mortgages to homeowners and investors rose in October 2021, reflecting strong borrower demand spurred by low rates, new data shows.
Australian Prudential Regulation Authority (APRA) Authorized Depository Institutions (ADIs) monthly statistics for October 2021 showed total resident loans and finance leases on the bank books increased by 15.9 billion dollars or 0.5% in October.
As such, banks now have $ 2.98 trillion on their books, with $ 1.9 trillion being owner-occupied and investor-occupied mortgages.
This was led by a $ 9.4 billion or 0.8 percent increase in loans to owner-occupied housing.
Investment loans for housing increased $ 1.5 billion or 0.2%.
This continues the trend of strong growth in home loans – which had grown by $ 17.7 billion – or 0.6 percent – in the previous month, which, according to APRA, is motivated by “strong demand from borrowers reinforced by low mortgage interest rates”.
The big bank continues to see decline in its home loan portfolio, with home loans falling from $ 260.4 billion in September to $ 260.4 billion in October.
The big bank’s homeowner loans edged up to $ 173.7 billion in October (from $ 173.4 billion in September), while its lending to investors edged down to $ 87.0 billion. of dollars to $ 86.6 billion.
ANZ’s total resident loans and finance leases remained stable at around $ 407.5 billion.
The Commonwealth Bank of Australia (CBA) loan portfolio grew from $ 493.6 billion in September to $ 497.5 billion in October, thanks to growth in its loan portfolio to homeowners and investors.
Its homeowner loans increased by about $ 3 billion, from $ 327.5 billion in September to $ 330.3 billion in October, while loans to CBA investors rose from 166.1 billion. billion dollars to 167.2 billion dollars.
Total CBA resident loans and finance leases climbed to just over $ 700 billion in October, according to APRA statistics.
Figures from the National Australia Bank (NAB) show its homeowner loan portfolio grew by more than $ 1 billion in October to a total of $ 173.5 billion in October (from $ 172.1 billion dollars in September).
NAB’s investor loan portfolio remained stable at around $ 100.6 billion, while total resident loans and finance leases increased to just over $ 500.5 billion .
Westpac continued to see its investor loan portfolio shrink from $ 173.5 billion in September to $ 172.4 billion in October.
However, its total loan portfolio grew to $ 424.2 billion, thanks to its homeowner portfolio, which grew from $ 250.2 billion to $ 251.8 billion during the month.
Westpac’s total resident loans and finance leases now stand at $ 609.4 billion.
Credit card loans increase for the first time in 6 months
Notably, APRA statistics also show that credit card loans increased for the first time since April 2021.
Credit card loans rose $ 0.3 billion or 1.1% in October, which APRA said “likely reflected improving economic conditions.”
Other loans to households (for example, personal fixed-term loans) decreased $ 0.3 billion or 0.4%.
Non-financial loans to businesses rose sharply by $ 4.6 billion or 0.5% in October, partly reflecting “improving business confidence and conditions,” according to the APRA report.
[Related: Home lending continues sustained growth: APRA]
Annie Kane is the managing editor of The Adviser and Mortgage Business.
In addition to writing about the Australian brokerage industry, mortgage market, financial regulation, fintechs and the broader lending landscape – Annie is also the host of Elite Broker and In Focus podcasts and The Adviser Live webcasts. .