5601.0.55.001 - Information Paper: Forthcoming Changes to Monthly Finance Statistics, 2018  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 11/01/2019  First Issue
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DISCUSSION OF THE MAIN CHANGES

The changes discussed in this paper relate only to changes in publication outputs derived through existing data collections. No new data items will be collected until the introduction of the modernised Economic and Financial Statistics (EFS) collection in 2019.


RELEASE FORMAT

All the information about monthly lending commitments will be in a single publication, with the total number of Excel tables down from 75 to 28. This reduction is mostly because of reduced state and territory detail for commercial finance, personal finance and lease finance.

The release schedule for the new publication will follow the current schedule for Housing Finance, Australia (cat. no. 5609.0). This will commence with the December 2018 issue of Lending to Households and Businesses, Australia (cat. no. 5601.0) which will be released 12 February 2019.

IssueRelease Date
December 2018 12 February 2019
January 2019 12 March 2019
February 2019 9 April 2019
March 201913 May 2019
April 20197 June 2019
May 201911 July 2019

The commentary of Housing Finance, Australia (cat. no. 5609.0) and Lending Finance, Australia (cat. no. 5671.0) will be replaced by more concise, situation-specific and analytical content aimed at helping users more readily understand the monthly statistics.

There will be no pdf version of Lending to Households and Businesses, Australia (cat. no. 5601.0). The content of the pdf versions of Housing Finance, Australia (cat. no. 5609.0) and Lending Finance, Australia (cat. no. 5671.0) was a duplication of the regular content published online. The simpler, easier-to-navigate format of the new publication reduces the need for a separate pdf publication summarising the monthly statistics.


ORGANISING PRINCIPLE

Statistics about monthly lending commitments will be organised to align with the approach of policy makers including:

• Lending commitments will be broadly classified as “lending to households” or “lending to businesses”.
• Lending to households for investment dwellings will no longer be included in commercial finance.
• Lending to businesses for construction or purchase of dwellings for rent or resale will no longer be reported in the same table as lending to households for investment dwellings.


STATISTICS AFFECTED BY THE CHANGED ORGANISING PRINCIPLE

StatisticIn the current publicationsIn the new publication

Lending to individuals (households) for investment dwellingsCommercial finance, Purchase of real propertyLending to households, Investment dwellings
Lending to individuals (households) for other investment purposesCommercial finance, OtherLending to households, Personal finance



LENDING FOR DWELLINGS: TO HOUSEHOLDS FOR OWNER OCCUPIERS

The ABS will publish state and territory-level, seasonally adjusted lending to owner-occupiers including and excluding refinancing for the first time.

The number of first home buyers who are owner-occupiers will be available in seasonally adjusted and trend series for Australia and at the state and territory level. The first home buyer ratio will be available in its current form along with a new ratio in which refinancing is excluded from the denominator. Lending to first home buyers who are not owner-occupiers remains unavailable.

A number of statistics will no longer be published:

• All tables of month-on-month percentage changes will be discontinued, though a few key percentage movements will be available in the headline table in the Main Findings section on the website.

• All average loan size statistics will be discontinued. Average loan size may be calculated wherever the number of commitments and the value of commitments are published, however, this should be done with caution. Some lenders have identified issues with reporting the number of dwellings relating to new loan commitments, for example, in situations where there are loan-splitting arrangements (a combination of fixed and variable rate loans for one dwelling). Because of this, calculations of average loan sizes are likely to understate the amount of lending per dwelling. Lenders are working towards fixing this reporting issue with the new EFS collection.

• The stock of housing loans outstanding in Housing Finance, Australia (cat. no. 5609.0 Table 12) will be discontinued. Loans outstanding with Authorised Deposit-Taking Institutions (ADIs) are available from the RBA. In addition, the lender categories Banks, Non-Banks, Permanent Building Societies, Securitisation Vehicles, and Wholesale Lenders n.e.c. are collapsed into the categories ADIs and ‘Non-ADIs’.

• Data categorised by lender-type will no longer be presented by purpose. For example, commitments by Credit Unions to owner-occupiers for construction of dwellings. Data will now be released separately for commitments to owner-occupiers by Authorised Deposit-taking Institutions (ADIs), which includes Credit Unions, and commitments by all lenders to owner-occupiers for construction of dwellings.

• All statistics about loan cancellations will be discontinued.

• Tables of seasonal factors will be discontinued. Seasonal factors for published statistics may be calculated by comparison of seasonally adjusted and original series.



New statistics about lending to households for owner occupier dwellings available in the new publicationCeasing statistics about lending to households for owner occupier dwellings. Discontinued in the new publication. (Table references are to Housing Finance, Australia, cat. no. 5609.0)

First home buyers, ratio of the number of owner occupier first home buyer commitments with the total number of owner occupier commitments, excluding refinancing

First home buyers, seasonally adjusted and trend estimates of the number and value of owner occupier first home buyer commitments at the Australia and state and territory levels

Commitments by lender categories 'Authorised Deposit-Taking Institutions' (ADIs) and 'Other lenders' (Non-ADIs) replace the current categories: Banks, Non-Banks, Permanent Building Societies, Securitisation Vehicles and Wholesale Lenders n.e.c.

Commitments excluding refinancing by state and territory, number and value, original, seasonally adjusted and trend.
Table 2. Housing Finance Commitments (Owner Occupation), By Purpose: Australia, (Percentage Change)

Table 3. Housing Finance Commitments (Owner Occupation), By Lender: Australia (Number and Value). Categories: Banks, Non-banks, Permanent Building Societies, Securitisation Vehicles and Wholesale lenders n.e.c. have been replaced with lender categories 'Authorised Deposit-Taking Institutions' (ADIs) and 'Other lenders' (Non-ADIs).

Table 4. Housing Finance Commitments (Owner Occupation), By Lender: Australia (Percentage Change)

Table 6. Housing Finance Commitments (Owner Occupation), By State and Territory (Percentage Change)

Table 8. Housing Finance Commitments (Owner Occupation), By Change in Stock: State and Territory and Australia Original ($'000)

Table 10c. Housing Finance Commitments (Owner Occupation), By Purpose: State, Original (Average Loan Size–$'000)

Table 12. Housing Loan Outstanding to Households (Owner Occupation and Investment Housing), By Lender: Australia, (Value)

Table 13b. Housing Finance Commitments (Owner Occupation), By Purpose and Lender: Australia, Original ($'000)

Table 13c. Housing Finance Commitments, By Purpose and Lender: Australia, Original (Average Loan Size–$'000)

Table 14. Housing Finance Seasonal Factors and Forward Factors for 12 months, By Purpose and Lender: Australia

Table 15. Housing Finance Seasonal Factors and Forward Factors for 12 months, By State and Territory



LENDING FOR DWELLINGS: TO HOUSEHOLDS FOR INVESTMENT

Lending to households for investment dwellings will no longer form part of commercial finance.

Refinancing of loans to households for investment dwellings will be published for the first time. Lending to households for investment dwellings will be available including and excluding refinancing at Australia and state and territory levels. Seasonally adjusted state and territory statistics about lending to households for investment dwellings will be available for the first time.

The lender categories Banks, Non-Banks, Permanent Building Societies, Securitisation Vehicles and Wholesale Lenders n.e.c. will be collapsed into the categories ‘ADIs’ and ‘Non-ADIs’.


New statistics about lending to households for investment dwellings available in the new publicationCeasing statistics about lending to households for investment dwellings. Discontinued in the new publication. (Table references are to Housing Finance, Australia, cat. no. 5609.0)

Value of commitments excluding refinancing, by state and territory, original, seasonally adjusted and trend.

Value of commitments to households for refinancing investment lending. These statistics include commitments for refinancing non-dwelling investment loans. Non-dwelling investment loans averaged less than 6% of dwelling investment loans over the last 12 months and the value of refinancing of non-dwelling investment loans is assumed to be correspondingly small.
Table 12. Housing Loan Outstanding to Households (Owner Occupation and Investment Housing), By Lender: Australia (Value)



LENDING FOR DWELLINGS: TO BUSINESSES

As part of commercial finance, the ABS publishes statistics about lending to businesses for construction of dwellings for rent or resale and purchase of dwellings for rent or resale. These statistics will continue to be available at the Australia level.

At the state and territory level, these statistics will no longer be published. The values reported by lenders will contribute to the aggregate state and territory statistics about Construction and Purchase of Real Property but won’t be published separately


New statistics about lending to businesses for dwellings available in the new publicationCeasing statistics about lending to businesses for dwellings. Discontinued in the new publication. (Table references are to Lending Finance, Australia, cat. no. 5671.0)

NoneState and territory statistics about lending to businesses for investment dwellings in Lending Finance, Australia (cat. no. 5671.0) tables 19 – 26, Commercial Finance Commitments, Fixed Loans & Revolving Credit: State (by state), Original ($000):

• Construction Finance ; Construction of dwellings for rent/resale
• Purchase of real property ; Dwellings for rent/resale (by Other). [In this instance, ‘Other’ means ‘businesses’.]



COMMERCIAL FINANCE

Commercial finance statistics will be available at the Australia level and the currently published categories will be seasonally adjusted.

At the state and territory level, only lending to businesses for total construction and for total purchase of real property will be available. Total commercial finance will not be available at the state and territory level.

There will be changes to the reporting of commercial finance by state and territory with the implementation of EFS.

Commercial finance will include value of fixed loans, revolving credit, and lease finance. Statistics about operating leases will cease.

Commercial finance will no longer include lending to households for investment purposes (investment dwellings and other investment purposes).


New statistics about commercial finance available in the new publicationCeasing statistics about commercial finance. Discontinued in the new publication. (Table references are to Lending Finance, Australia, cat. no. 5671.0)

Fixed loans by industry and revolving credit by industry are available as original, seasonally adjusted and trend series.

Fixed loans by broad purpose are available as original, seasonally adjusted and trend series. Broad purpose categories are: ‘construction’, ‘purchase of real property’, ‘wholesale finance’,
‘plant and equipment’, ‘refinancing’ and ‘other’.
Statistics about lending to households for investment purposes continue to be published but are no longer categorised as commercial finance:

• Purchase of real property ; Dwellings for rent/resale (by Individuals)
• Lending to households for other (non-dwelling) investments moves from being a component of Commercial Finance ; Other to an explicit item in Personal Finance.

State and territory statistics about lending to businesses for investment dwellings in Lending Finance, Australia (cat. no. 5671.0) tables 19 – 26, Commercial Finance Commitments, Fixed Loans & Revolving Credit: State (by state), Original ($000)

• Construction Finance ; Construction of dwellings for rent/resale
• Purchase of real property ; Dwellings for rent/resale (by Other). [In this instance, ‘Other’ means ‘businesses’.]

Revolving Credit - cancellations and reductions

Operating leases

All statistics other than the value of finance leases for the categories of ‘motor vehicles’, ‘other transport equipment’, ‘agricultural, construction and manufacturing equipment’, ‘office equipment’ and ‘other’ are discontinued.



PERSONAL FINANCE

Personal finance will be available only at the Australia level.

The personal finance categories purposes for which statistics will be produced will be reduced. For example, value of lending for the purchase of ‘motor vehicles’ will be reported but the numbers and values of loans for subcategories such as ‘used cars and station wagons’ and ‘motorcycles’ will be discontinued.

Personal finance will include lending to households for non-dwelling investment purposes for the first time.


New statistics about personal finance available in the new publicationCeasing statistics about personal finance. Discontinued in the new publication.

Seasonally adjusted and trend series of values of fixed loan commitments for the categories of ‘motor vehicles’, ‘boat, caravans and trailers’, ‘individual residential blocks of land’,
‘unsecured loans for owner occupied housing’, ‘household goods’, ‘debt consolidation’, ‘travel and holidays’ refinancing’ and ‘other’.

Lending to households for non-dwelling investments
All state and territory statistics

Values and numbers of commitments for sub-categories of 'motor vehicles' (new cars, used cars, motor cycles, other motor vehicles)

Revolving credit – cancellations and reductions



SEASONAL ADJUSTMENT

The ABS will publish more seasonally adjusted and trend series of monthly finance statistics.

New trend and seasonally adjusted series will include:

• First home buyer loan numbers at Australia and at the state and territory levels.
• Values of loans to households for investment dwellings, including and excluding refinancing, at Australia and at the state and territory level.

Some seasonality will change because the ABS is changing how the aggregates are constructed. For example, total commercial finance lending will be lower in value because it will no longer include lending to households for investment purposes. Removing lending to households for investment purposes will affect the seasonality of the remaining commercial finance series. This will lead to revisions to previously published statistics.

Early indications of how seasonal adjustment changes affect the statistics can be obtained by comparing seasonally adjusted data in this information paper with seasonally adjusted data in the September releases of Housing Finance, Australia (cat. no. 5609.0) and Lending Finance, Australia (cat. no. 5671.0).

Below is a table showing how seasonally adjusted and trend statistics have changed for some key aggregates.



Seasonally adjusted values for September 2018
Seasonally adjusted values for September 2017
Since
September 2017
largest
difference %
Difference
Difference
5609.0 / 5671.0
September 2018
release
5601.0
September 2018
information paper
Value
%
5609.0 / 5671.0
September 2018
release
5601.0
September 2018
information paper
Value
%

Lending commitments to owner occupiers excluding refinancing, number
34,042
34,161
119
0.35
38,831
38,897
66
0.17
-1.88

Lending commitments to households for investment dwellings including refinancing, value ($000)
8,103,632
8,163,539
59,907
0.74
10,018,093
10,027,407
9,314
0.09
4.30

Lending to businesses for revolving credit, value ($000)
11,257,115
11,292,886
35,771
0.32
9,879,590
9,685,484
-194,106
-1.96
5.90