Invest
Interest-only loan approvals plummet 55%
Tougher lending regulations are hitting investors hard, with the banking regulator finding approvals for interest-only loans took a 54.9 per cent dive in the last quarter.
Interest-only loan approvals plummet 55%
Tougher lending regulations are hitting investors hard, with the banking regulator finding approvals for interest-only loans took a 54.9 per cent dive in the last quarter.
Interest-only loans now represent 16.2 per cent, or $61.2 billion, of new home loan approvals, according to the latest data from APRA.
Investor home loan approvals also dropped by 12.4 per cent over the quarter, representing 31.1 per cent of new home loan approvals, a total of $117.5 billion.
Conversely, APRA’s statistics have shown a 4.3 per cent ($10.6 billion) year-on-year rise in owner-occupied lending, which now represents 68.9 per cent ($260.6 billion) of new home loan approvals.
Further, the figures also revealed that mortgages with a loan-to-value ratio (LVR) greater than 80 per cent and less than or equal to 90 per cent decreased, falling by 6.2 per cent ($3.4 billion) to 13.5 per cent ($51.1 billion) of all loan approvals.
A sharper decline was reported for mortgages with LVR greater than 90 per cent, with such loan approvals falling by 12.2 per cent ($3.6 billion), now representing 6.8 per cent ($25.8 billion) of all settlements.
Moreover, the data revealed that the share of new loans approved by majors banks decreased by 1.5 per cent ($5.9 billion) year-on-year, representing $378.1 billion of new loans approved.
In total, $94.6 billion in new loans were approved in the year to 30 June 2018, a 4.1 per cent decline from $98.7 billion in the previous corresponding period.
The average size of loans approved over the same period increased by 4.1 per cent from $261,000 to $272,000.
APRA also reported that asset quality improved over the same period, with the number of impaired facilities decreasing by 13.5 per cent ($1.8 billion) to $11.4 billion as at 30 June 2018.
Australia’s overall mortgage portfolio totalled $1.62 trillion as at 30 June 2018, an increase of $86.6 billion (5.6 per cent) on 30 June 2017.
Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more
Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more
Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more
Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more
Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more
Property
HSBC forecasts 2023 house price decline of up to 10%
The firm had previously predicted a modest rise for house prices next year. ...Read more
Property
Perth house prices continue climbing to a record high
While growth may have come to an end in Sydney and Melbourne, Perth house prices are still on the rise. ...Read more
Property
Stamp duty significantly slowing path to purchase for FHB
Saving for a home takes years for the typical first-time buyer. In Australia’s largest cities, as much as two years are spent simply building up the funds to pay the cost of stamp duty, according to...Read more
Wrapping up an eventful 2021
Listen now
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more
Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more
Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more
Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more
Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more
Property
HSBC forecasts 2023 house price decline of up to 10%
The firm had previously predicted a modest rise for house prices next year. ...Read more
Property
Perth house prices continue climbing to a record high
While growth may have come to an end in Sydney and Melbourne, Perth house prices are still on the rise. ...Read more
Property
Stamp duty significantly slowing path to purchase for FHB
Saving for a home takes years for the typical first-time buyer. In Australia’s largest cities, as much as two years are spent simply building up the funds to pay the cost of stamp duty, according to...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
