Invest
Housing finance records continue to tumble
Australian housing loan commitment has reached another record high in January, rising by 10.5 per cent in the last month alone, official figures show.
Housing finance records continue to tumble
Australian housing loan commitment has reached another record high in January, rising by 10.5 per cent in the last month alone, official figures show.
Stats released by the Australian Bureau of Statistics (ABS) showed that the value of new loan commitments rose by $28.8 billion in January 2021.
“In January 2021, the value of new loan commitments for owner-occupier housing was 52.3 per cent higher than in January 2020,” ABS head of finance and wealth, Katherine Keenan, said.
The ABS points to government support during the COVID-19 pandemic as a major driver to the growth in new loan commitments.
“Since the HomeBuilder grant was introduced in June 2020, there have been record rises in the value of construction loan commitments. Loan applications made late in 2020 (prior to the reduction of the HomeBuilder grant on 1 January 2021), contributed to the strong rise in January’s construction loan commitments of 15.7 per cent,” she said.
Real Estate Institute of Australia (REIA) president Adrian Kelly said the increase in home loan commitments was a 12-year high.
“The number of owner-occupier first home buyer loan commitments increased by 9.6 per cent for the month and is 70.8 per cent higher than 12 months earlier. This is the highest level since May 2009, when the Commonwealth Government’s response to the GFC included the temporary increase in the First Home Owner Grant,” he explained.
Mr Kelly said owner-occupier first home buyer loan commitments accounted for 36.5 per cent of all owner-occupier commitments excluding refinancing.
“The increased activity by investors, first home buyers and owner-occupiers in the market shown in the January lending figures is impacting on prices and affordability. REIA’s Housing Affordability Report, which will be released on the 3rd of March, will examine this,” he explained.
However, REIA said it is not just owner-occupiers who are taking advantage of stimulus packages, with investors also looking to get into the market.
“Loans to investors also increased for the eighth consecutive month, with the value of loan commitments for investor housing increasing by 9.4 per cent for the month, the largest rise since September 2016, and 22.7 per cent for the year on the back of improving rental market conditions,” Mr Kelly concluded.
RELATED ARTICLES
About the author
About the author
Property
Navigating the crunch: A 2025 case study of Australia’s housing market and the operators who outperformed
Australia’s 2025 property market was defined by a stubborn supply squeeze and cost-of-living pressure—tempered by rate cuts and targeted incentives. Yet a cohort of developers, lenders and agencies ...Read more
Property
Australia’s mortgage rebound: a 19% surge that reshapes pricing, risk and distribution
New APRA figures show new home lending jumped 18.9% in the September quarter year-on-year, signalling a demand recovery despite elevated rates. The upswing intensifies a three-way contest between ...Read more
Property
Short stays lose their shine: Why Australian investors are quietly pivoting to long‑term rentals
Australian buyers once lured by short-stay yields are shifting capital to long-term rentals. The driver isn’t sentiment; it’s operating economics under pressure from platform concentration, compliance ...Read more
Property
New investment platform Arkus allows Australians to invest in property for just $1
In a groundbreaking move to democratise investment in property-backed mortgage funds, GPS Investment Fund Limited has launched Arkus™, a retail investment platform designed to make investing ...Read more
Property
Help to Buy goes live: What 40,000 new buyers mean for banks, builders and the bottom line
Australia’s Help to Buy has opened, lowering the deposit hurdle to 2 per cent and aiming to support up to 40,000 households over four years. That single policy lever will reverberate through mortgage ...Read more
Property
Australia’s mortgage knife‑fight: investors, first‑home buyers and the new rules of lender competition
The mortgage market is staying hot even as rate relief remains elusive, with investors and first‑home buyers chasing scarce stock and lenders fighting for share on price, speed and digital experienceRead more
Property
Breaking Australia’s three‑property ceiling: the finance‑first playbook for scalable portfolios
Most Australian investors don’t stall at three properties because they run out of ambition — they run out of borrowing capacity. The ceiling is a finance constraint disguised as an asset problem. The ...Read more
Property
Gen Z's secret weapon: Why their homebuying spree could flip Australia's housing market
A surprising share of younger Australians are preparing to buy despite affordability headwinds. One in three Gen Z Australians intend to purchase within a few years and 32 per cent say escaping rent ...Read more
Property
Navigating the crunch: A 2025 case study of Australia’s housing market and the operators who outperformed
Australia’s 2025 property market was defined by a stubborn supply squeeze and cost-of-living pressure—tempered by rate cuts and targeted incentives. Yet a cohort of developers, lenders and agencies ...Read more
Property
Australia’s mortgage rebound: a 19% surge that reshapes pricing, risk and distribution
New APRA figures show new home lending jumped 18.9% in the September quarter year-on-year, signalling a demand recovery despite elevated rates. The upswing intensifies a three-way contest between ...Read more
Property
Short stays lose their shine: Why Australian investors are quietly pivoting to long‑term rentals
Australian buyers once lured by short-stay yields are shifting capital to long-term rentals. The driver isn’t sentiment; it’s operating economics under pressure from platform concentration, compliance ...Read more
Property
New investment platform Arkus allows Australians to invest in property for just $1
In a groundbreaking move to democratise investment in property-backed mortgage funds, GPS Investment Fund Limited has launched Arkus™, a retail investment platform designed to make investing ...Read more
Property
Help to Buy goes live: What 40,000 new buyers mean for banks, builders and the bottom line
Australia’s Help to Buy has opened, lowering the deposit hurdle to 2 per cent and aiming to support up to 40,000 households over four years. That single policy lever will reverberate through mortgage ...Read more
Property
Australia’s mortgage knife‑fight: investors, first‑home buyers and the new rules of lender competition
The mortgage market is staying hot even as rate relief remains elusive, with investors and first‑home buyers chasing scarce stock and lenders fighting for share on price, speed and digital experienceRead more
Property
Breaking Australia’s three‑property ceiling: the finance‑first playbook for scalable portfolios
Most Australian investors don’t stall at three properties because they run out of ambition — they run out of borrowing capacity. The ceiling is a finance constraint disguised as an asset problem. The ...Read more
Property
Gen Z's secret weapon: Why their homebuying spree could flip Australia's housing market
A surprising share of younger Australians are preparing to buy despite affordability headwinds. One in three Gen Z Australians intend to purchase within a few years and 32 per cent say escaping rent ...Read more
