Investor loans continue to rise

Investors are continuing to show confidence in the future of property with the latest data showing a 6.1% rise in the value of housing loans made to investors in January, according to the Australian Bureau of Statistics (ABS).

A total of $11 billion was loaned to investors  - that’s a new record and the 15th consecutive month of growth in investor loans with investors now accounting for a third of all housing loans across Australia.

The hotspots where investment loans grew significantly were: 

  • Australian Capital Territory: 22.8%
  • Victoria: 11.1%
  • New South Wales: 9.8%

Queensland (-1.7%) went backwards, but its annual investor loan levels remain at historic highs, while investor loans in South Australia fell -2.5% and Tasmania -3.0%.

Lenders issued a total of $33.7 billion in loans in January. That’s up 2.6% month-on-month and represents another record high, according to the ABS.

Homeowners climbing the property ladder borrowed $22.69 billion – up 1% on the previous month.

Another record has been set for the average loan size for owner-occupiers. It now stands at nearly $619,000 – up $17,000. Every state and territory hit record-highs for owner-occupier loans in January except Tasmania.

The data also shows however that there are fewer first-time buyers in the market, dropping 6.9% across the country. 

If you’ve been considering investing in property, we can help you look at your financing options.

Published: 20/4/2022

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