New lending jumps by $1.2 billion in July

The total value of new home loans approved in the month of July was $30.58 billion – with $1.2 billion more loans settled compared to the previous month, according to ABS Lending Indicator data.

Investors continue to lead the charge with $11.71 billion worth of loans settled in July, up 5.4 per cent from the previous month, and 35.4 per cent higher than the same time last year.

Owner-occupier lending increased by 2.9 per cent in July, and saw a 21.4 per cent increase year-on-year in seasonally-adjusted terms.

Value of new home loans approved in July 2024

Source: ABS Lending Indicators July 2024, released 6 Sept 2024, seasonally adjusted data.

Refinancing increases, but still down year-on-year

The total value of refinancing increased $685.4 million, or 4.3 per cent in July, after falling for the previous two months.

Overall, refinancing was down $4.52 billion, or 21.4 per cent compared to the same time last year.

Value of loans refinanced in July 2024

Source: ABS lending indicators, seasonally adjusted data.

First home buyers

The value of first home buyer home loans increased slightly by 0.8 per cent in July, compared to the previous month, and 19.7 per cent compared to the same period last year.

Number and value of new owner-occupier first home buyer loans in July 2024

Source: ABS Lending Indicators July 2024, released 6 Sept 2024, seasonally adjusted data.

Fixing drops again as borrowers hold out for RBA rate cuts

The proportion of borrowers opting for a fixed rate dipped to just 1.91 per cent in July, after a small increase in the previous month.  

Just $1.11 billion worth of loans opted for a fixed rate, out of the $57.92 billion worth of new and refinanced loans approved in the month of July.

Fixed vs variable: proportion of new and refinanced loans

Source: ABS Lending Indicators, original data. Based on the value of new and refinanced loans funded in the month. 

New loan sizes tick up again

The average new owner-occupier mortgage in Australia is now $640,998 – a new record high that is set to continue rising alongside property prices in some states.

Over the last 12 months, the national average has risen by $47,785, despite the fact the cash rate is at its highest level since November 2011.

Not every state across the country saw its average new owner-occupier loan size rise this month, however; with values in Queensland, Western Australia and Tasmania dipping slightly in July.

Average new loan sizes - owner-occupier mortgages

Source: ABS Lending Indicators July 2024, released 6 Sept 2024, seasonally adjusted data.

RateCity.com.au money editor, Laine Gordon, said: “New lending jumped $1.2 billion in the month of July, recording growth for the second month in a row.”

“The value of new loans in July has risen sharply since the same time a year ago, led by investors, which have staged a comeback accounting for a third more of the lending than they did the same time last year,” she said.

“Refinancing remains in the doldrums, despite a slight increase over the past two months. There is now almost half a billion ripped out of the refinancing market since the start of the rate hikes.

“Fixing dipped again in July, and is set to continue flatlining, as borrowers hold out for the next RBA rate cut. This is despite lenders’ best efforts to lure borrowers back over to fixed loans by slashing their rates,” she said.

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