Powered by MOMENTUM MEDIA
the adviser logo
Borrower

Investors switched $1.2bn of loans to owner-occupier

by Reporter4 minute read
Investors switched $1.2bn of loans to owner-occupier

The total value of loans changed from investor to owner-occupier amounted to $1.2 billion in October 2017, according to the RBA.

The latest financial aggregates statistics release from the Reserve Bank of Australia reveals that the net value of switching of loan purpose from investor to owner-occupier totalled $60 billion over the period of July 2015 to October 2017.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

Of this, $1.2 billion of loans were switched in October 2017.

The RBA stated that the reason for this is down to “the introduction of an interest rate differential between housing loans to investors and owner-occupiers in mid-2015”.

Advertisement
Advertisement

While the growth rates in the release were adjusted to remove the effect of loan purpose changes, they show that owner-occupier lending growth has dropped while invest lending has increased.

For the 12 months ending October 2017, owner-occupier lending grew to 6.3 per cent (seasonally adjusted), down from the 7.1 per cent for the 12 months ending October 2016.

Conversely, the growth in investor lending grew from 5.2 per cent in the year ending October 2016 to 6.9 per cent for the comparative period this year.

Comparing the figures to the previous release, housing credit dropped to 6.5 per cent in the 12 months ending October 2017, down from 6.6 per cent in September. 

[Related: Heritage Bank resumes investor lending]

Investors switched $1.2bn of loans to owner-occupier
money dollar
TheAdviser logo
money dollar

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

mark pesce futurist ajxjkn

Automation is changing, not replacing, the role of finance brokers

On Thursday (4 August), the Australian Financial Review (AFR) ran a story with the headline: “Finance brokers top...

READ MORE
des hang carbar zaheer jappie carclarity ta qtvnqr

CarClarity confirms partnership with car subscription platform

Established in March 2020, CarClairty is a finance platform that connects car buyers with more than 30 different...

READ MORE
anthony albanese profile ta vtpifc

Further grants confirmed for flood survivors, $47m pledged

According to a statement released by the federal government, the Back Home grant will be made available to impacted...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more