Recent data from the Australian Prudential Regulation Authority showed that new mortgage lending hit $98.4 billion over the June 2016 quarter. There was also $1.437bn in outstanding residential mortgages to households across all Australian Authorised Deposit-taking Institutions.
This reflects a growth rate of 8.1% year-on-year – the slowest since June 2014.
Meanwhile, the value of owner-occupier mortgages has increased by 14.8% year-on-year, the highest increase in over six years, since March 2010.
Over $930bn outstanding to owner-occupiers and more than $506bn outstanding to investors are accounted under outstanding mortgages. Investor lending slowdown is marked with investor mortgages outstanding falling to a record low of -2.4% year-on-year.
The average outstanding mortgage balance was 4.5% higher year-on-year with the median value now pegged at $252,100.
The data also shows that owner-occupier lending is 16.2% higher year-on-year while it is -16.9% year-on-year lower for investor lending.
Lenders and borrowers are now using larger deposits based on the loan-to-value ratios (LVR) on new home loans over the June quarter. There was a recorded 78% of mortgages that had an LVR of less than 80% that equates to the borrower depositing at least 20% on their loan. New mortgages that had an LVR of more than 90% just hit 8.3%. The decline in loans with an LVR above 90% is encouraging because it implies a lower risk for the property market.
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