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The impact of rate hikes continued to manifest in dwelling approvals and lending activity in June 2023.

Recent data from the ABS showed declines in both the number of dwellings approved and lending activity over the month.

Here are the highlights of the recently released ABS data for June 2023:

  • The value of new owner-occupier commitments, excluding refinancing fell 2.8% to $15.9bn.
  • Investor financing rose 2.6% to $8.7bn.
  • The number of new loan commitments from first-home buyers fell 0.8%
  • Refinancing activity fell 3.1% but remained high at $20.2bn
  • The total number of dwellings approved fell 7.7% in June, following the 20.5% increase in May.

Housing Industry Association (HIA) chief economist Tim Reardon said the rate hikes number of loans issued for the purchase and construction of a new home has fallen to their lowest level since 2008, and the number of detached building approvals has fallen to its second lowest month since 2013.

“When the RBA first increased the cash rate there was a record volume of houses under construction, and a record volume of new houses approved, but not commenced,” he said.

“This large volume of work in the pipeline has obscured the adverse impact of rising rates on the wider economy.”

Mr Reardon said the increased government regulatory costs, rising land prices and construction costs are further impeding an increase in the supply of new homes.

“This lack of new work entering the pipeline threatens to worsen the affordability crisis — only solution to addressing this crisis is to increase the supply of new housing.”

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Rates
Features
Fees
Other
Lender
Variable
More details
Online ExclusiveUp to $4k cashbackINCLUDES NOV RBA RATE INCREASE
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
Online ExclusiveUp to $4k cashbackINCLUDES NOV RBA RATE INCREASE

Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
More details
Variable
More details
  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMEYM. (T&Cs apply)

Up Home Variable (Principal & Interest) (LVR ≤ 90)

  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMEYM. (T&Cs apply)
More details
Variable
More details

Variable Rate Home Loan – Refinance Only

    More details
    • Immediate cashback upon settlement
    • $2000 for loans up to $700,000
    • $4000 for loans over $700,000

    More details
    Important Information and Comparison Rate Warning

    Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of December 2, 2023.

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    Photo by @poringstudio on Canva.

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