Investor loans fall to lowest level in 12 months

  • Tighter APRA regulations have pushed investors out of the housing market and given leeway to first-home buyers
  • Business conditions also reached a multi-year high in June according to a National Australia Bank business survey, echoing back to pre-global financial crisis levels
  • ABS figures: home loans to investors as a proportion of all loans dropped to 46%, down from a high of over half of all home loans in January
  • House prices fell by 1.1% in May
  • APRA regulations: restriction on interest-only loans to less than 30% of new home loan approvals and tightening to high-risk loans
  • Loans to first-home buyers rose 0.2% in May, to 14% of all loans
  • The stamp duty reductions announced by the NSW and Victorian governments, which could reduce the cost of a home by up to $40,000 for first-home buyers, are set to begin on July 1 and might produce stronger results
  • Stamp duty on first home buyers on existing and new homes up to $650,000 will be eradicated, and there will be discounts for homes up to $800,000. These changes are expected to provide savings of up to $24,740 for first home buyers
  • ANZ senior economic Jo Masters said investor housing finance was continuing to slow, reflecting the combination of additional regulations, out-of-cycle interest rate hikes and various government measures.

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