New mortgage lending dropped over September

The latest Lending Indicators data released by the Australian Bureau of Statistics (ABS) has revealed a fall in new loan commitments for housing of 0.3 per cent during September.

While new loan commitments for owner-occupiers rose slightly by 0.1 per cent, the fall was largely driven by a 1 per cent decline in investor lending, knocking it down from its near two-year peak.

This also marks the first decline in new loan commitments for housing after seven consecutive months of positive growth.

The value of new loan commitments for total housing fell to $30.2 billion following a rise of 2.1 per cent in August, sitting 18.9 per cent higher compared to the same time in 2023.

Meanwhile, owner-occupier loan commitment values rose to $18.6 billion, 13.1 per cent higher compared to a year ago, and investor housing fell to $11.6 billion, down from $11.7 billion, but still remains 29.5 per cent higher compared to last year.

Investor lending fell by 15.7 per cent in the ACT, followed by declines in Queensland (3.7 per cent), Victoria (0.7 per cent), and Western Australia (0.1 per cent), while increases were seen in Tasmania (18.2 per cent), the Northern Territory (9 per cent), South Australia (7.5 per cent), and NSW (1.6 per cent).

ANZ economist Madeline Dunk and senior rates strategist, Jack Chambers, said that this was the first fall in investor lending in five months and that the fall was attributed to softer sales volumes despite the increase in average loan sizes.

Indeed, ABS head of finance statistics, Dr Mish Tan, said: “Over the past 18 months, the average size of loans approved increased for both owner-occupiers and investors.

“However, the growth in investor loans was also driven by increases in the number of loans being approved.

“Investor activity remains at high levels in response to the recent growth in house prices and rental yields.”

The number of new owner-occupier first home buyer loans also fell during the month, down by 3.2 per cent to 9,686, however, was 2 per cent higher than September 2023.

Tan further said: “In September 2024 there were 9,686 loans to first home buyers across Australia. Victoria made the largest contribution, with 3,146 loans, followed by New South Wales with 2,250 and Queensland with 1,845.”

[RELATED: Investor lending nearing 2022 peak]

Adrian Suljanovic is a journalist at Broker Daily with more than two years experience reporting on all facets of the third party distribution channel.

Adrian has written for a range of business and finance titles including IFA, Investor Daily and Lawyer’s Weekly before joining the mortgages team in 2022.

He graduated from the University of Wollongong in 2021 gaining a Bachelor of Communication & Media with a major in Digital & Social Media.

E-mail Adrian at: This email address is being protected from spambots. You need JavaScript enabled to view it.