Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Owner-occupier finance rises as lease finance drops

financial data ta financial data ta
Reporter 4 minute read

In November 2017, secured housing finance for owner-occupiers and personal finance both rose, while lease finance dropped, new statistics from the Australian Bureau of Statistics show.

According to new lending finance data from the ABS, loans to owner-occupiers totalled $21 billion in November 2017, up by 0.1 per cent on the previous month (in trend terms) and up by 2.7 per cent when seasonally adjusted.

The data refers to secured housing finance for owner-occupiers for the purchase or construction of dwellings for owner-occupation and for alterations and additions to existing dwellings. Refinancing involving a change of lender is also included.

Personal finance also rose, growing by 1 per cent (or 1.1 per cent, seasonally adjusted) over the month to just over $6.4 billion.

Advertisement
Advertisement

Fixed lending commitments rose by 1.7 per cent (0.1 per cent, seasonally adjusted), while revolving credit commitments fell by 0.2 per cent in trend terms (2.8 per cent, seasonally adjusted).

Commercial finance — provided to individuals and corporations for business or investment purposes, including for the construction or purchase of dwellings for rental or resale — also ticked up in trend terms, rising by 0.5 per cent to $42.3 billion.

When looking at commercial finance on a seasonally adjusted basis, commercial finance commitments rose by a whopping 14.7 per cent ($45.6 billion).

The seasonally adjusted series for the value of total commercial finance commitments showed that fixed lending commitments rose by 22.0 per cent, while revolving credit commitments fell by 8.1 per cent. 

Despite the general upward trend, lease finance (excluding operating and leverage leases) dropped in November 2017.

PROMOTED CONTENT


The trend series for the value of total lease finance commitments fell by 1.2 per cent to $556 million, while the seasonally adjusted series fell by 8 per cent (after a rise of 4.1 per cent in October 2017) to $539 million.

Lease finance from banks was the lead cause of the drop in volume, with bank finance for this type of loan falling from $44.2 billion in October 2017 to $41.5 billion in November. General financiers and finance companies also pulled back on lease finance in the month.

The lending finance figures for November 2017 follow on from housing finance approval statistics which revealed that the value of all housing finance commitments increased by 2.3 per cent over the month to $33.5 million, driven by owner-occupied housing (up by 2.7 per cent) and investors (up by 1.5 per cent).

[Related: Mortgage demand continues to climb]

Owner-occupier finance rises as lease finance drops
financial data ta
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Work smarter, not harder, in 2022 and beyond, visit the website here to secure your ticket.

financial data ta

 

more from the adviser
Beau Bertoli Greg Moshal 863x385jpg

Breaking News

Prospa squares up against banks, expands SME loan

The ASX-listed lender has flagged a new “all-in-one” business...

small business owner ta

Breaking News

Business credit demand bounces back in NSW

Data from the initial days of NSW reopening after lockdown has sh...

suburb

Breaking News

Hot Property: The biggest property headlines from the week 18-22 October

The weekly round-up of the biggest news stories from across Momen...