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Investor loans defy APRA crackdown

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3 minute read

The value of new investor loans rose in April despite attempts by the prudential regulator to curb investor lending, according to the Australian Bureau of Statistics.

According to newly released housing data for April, the total value of investor loans was up 2.6 per cent on the previous month, making up almost $13.5 billion of the record-breaking monthly total of $32.7 billion.

However, while loans issued to investors rose in April, Mortgage Choice chief executive John Flavell expects the growth to taper off as the regulator’s crackdown on investor lending escalates.

“Over the past month and in-line with requests from the Australian Prudential Regulation Authority (APRA), many of Australia’s lenders have started to make some significant changes in the areas of policy and pricing in an endeavour to limit lending growth to investors,” Mr Flavell said in a statement reflecting on the fresh ABS data.

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“As these changes start to take effect, I think we may see a slight reduction in investor demand and the overall value of all dwelling commitments.”

Meanwhile, the total value of outstanding home loans written by banks and ADIs has surged to an all-time record of $1.39 trillion, comprising of a total of $908.8 billion in owner-occupier loans and $483.3 billion in investor loans.

First home buyer levels also inched higher, with the average loan size for first time buyers rising by $8,500 to $334,800 compared to a $9,700 rise for all owner-occupier housing commitments.

Fixed-loan rates fell to 10.3 per cent as a proportion of new loans, their lowest level in half a decade.

[Related: No investor loan surge for non-bank]

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