Record housing loan commitments in November

The total value of new loan commitments for housing and the value of owner occupier home loan commitments both reached record highs in November 2020, according to the latest Australian Bureau of Statistics (ABS) figures released today.

The total value of new loan commitments for housing rose 5.6 per cent to $24 billion in November, seasonally adjusted, a 23.7 per cent increase on November 2019.

The value of new owner occupier home loan commitments rose 5.5 per cent to $18.3 billion in November 2020, 31.4 per cent higher than November 2019.

ABS head of Finance and Wealth, Amanda Seneviratne, said: “Loan commitments for existing dwellings rose 5.9 per cent and were the largest contributor to the rise in November’s owner occupier housing loan commitments.

“The value of construction loan commitments grew 5.6 per cent in November, rising 75 per cent since July. This follows the implementation in June of the Government’s HomeBuilder grant in response to COVID-19.

“Other federal and state government incentives and ongoing low interest rates also contributed to the continuing growth in new housing loan commitments,” Ms Seneviratne said.

In November, the number of owner occupier first home buyer loan commitments rose 3.1 per cent to reach 13,905 (seasonally adjusted), a 42.5 per cent rise since the start of the year.

This is the highest level seen since October 2009 when similar rapid growth was spurred by the temporary tripling of the first home owner grant, which was part of the Commonwealth Government’s economic stimulus package in response to the global financial crisis.

The value of owner occupier home loan commitments rose across the largest states and territories but showed mixed results in the smaller ones.

Victorian owner occupier home loan commitments rose sharply, up 19.6 per cent in seasonally adjusted terms in November, reflecting a surge in housing market activity as COVID-19 restrictions were eased.

The total value of loan commitments for investor housing rose 6 per cent to reach $5.6 billion.

The value of new loan commitments for fixed term personal finance rose 13.2 per cent in November, seasonally adjusted, mostly due to increased commitments for vehicles.

The ABS appreciates the continued support of the Australian Prudential Regulation Authority (APRA) and lending institutions in providing the data used to compile this publication and for the additional data insights being provided by lending institutions.

More information is available in Lending Indicators, Australia