The value of new loans fell 4.4% in June

The value of new home loans in Australia fell 4.4% in June, continuing to decline from a high of $33.2 billion in January.

The latest data from the Australian Bureau of Statistics (ABS) shows that while new loan commitments are trending lower, they remain at an all-time high of $31 billion.

In most states, the value of new loan commitments to homeowners fell, led by Victoria which fell 7.1%, after rising 6.1% in May, while smaller falls have seen in New South Wales (down 2%) and the West. Australia (down 4.7%).

ABS finance and wealth manager Katherine Keenan said that despite the falls, levels are still higher than before the pandemic.

“The value of new loan commitments to homeowners fell 3.3% in June 2022, while new loan commitments to investors fell 6.3%,” Ms Keenan said.

“These declines followed increases in May, attributed to a clearing of application processing backlogs by lenders.

“Even with the June falls, the value of new loan commitments to homeowners remained 50% above pre-pandemic levels in February 2020, and the value of new loan commitments to investors remained 101% higher. %.”

Meanwhile, the value of borrower refinancing of homeowner’s home loan commitments between lenders rose 9.7% to a new record high of $12.7 billion in June 2022.

“The value of homeowner refinance, where the borrower changed lenders, was 25% higher in June compared to a year ago,” she said.

“As interest rates have risen in recent months, borrowers have been seeking loans at lower interest rates and lenders have been competing to attract them.”

The number of new loan commitments to first-time home buyers fell 8% in June 2022 to 9,393, close to the pre-pandemic level in February 2020 of 9,549.

The number of such loan commitments declined in almost all states and territories, particularly in Victoria (down 11.2%), New South Wales (down 9.4%) and Australia- Western (down 13.8%).

The 6.3% national decline in the value of new loan commitments to investors was led by New South Wales (down 10.5% or $439 million), Victoria (down 3.4% or $100 million) and Western Australia (down 10.6% or $78 million). million).

Queensland, South Australia and the Australian Capital Territory also fell, but Tasmania and the Northern Territory saw slight increases.

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