Owner-occupied financing drops for non-banks, banks

Staff Reporter Monday, 12 May 2008 1 minute read

Tight funding conditions, increased unaffordability levels and recent media negativity impacted non-bank financing commitments in March, figures released today by the ABS have revealed.

The number of owner-occupied dwellings financed by the sector decreased by 13 per cent, seasonally adjusted, over March, after a revised decrease of 6.9 per cent in February.

The number financed by banks fell 4.7 per cent, in line with an overall 6.1 per cent seasonally-adjusted decline in owner-occupied dwellings financed in March.

Other significant ABS indicators released Friday included:

• Total value of finance towards investment housing fell 7.2 per cent, seasonally adjusted, to $5.978 billion.

• Total number of new dwelling finance commitments fell 11.5 per cent, seasonally adjusted, to 1.981 billion.

• The number of first home buyer commitments as a percentage of total owner-occupied housing finance commitments decreased from 17.2 per cent to 16.4 per cent in March.

• The number of fixed-rate loan commitments as a percentage of total owner-occupied housing finance commitments rose to 23.9 per cent in March, from 23.6 per cent in February.

Published: 12-05-08