Investor activity rises, high-debt borrowing falls
28/3/2024
The latest set of home loan data from the banking regulator, the Australian Prudential Regulation Authority (APRA), has revealed three interesting shifts in the mortgage market over the past year.
First, there’s been a meaningful rise in investor activity during that time. During the December 2022 quarter, 30.2% of new loans were for investment purposes; but in the December 2023 quarter, the share increased to 32.4%. There’s been a corresponding decline in owner-occupier activity, which fell from 67.7% to 65.6%.
Second, there’s been a sharp decline in borrowing with a debt-to-income ratio of six or greater (e.g. someone on a $100,000 salary borrowing $600,000 or more). This fell from an 11.0% share of new loans in December 2022 to only 5.6% in December 2023.
Finally, the share of borrowing with a loan-to-value ratio of 80% or higher has actually increased, from 30.6% of new loans in December 2022 to 31.4% in December 2023.
Whether you’re an owner-occupier or investor, I can advise you about your borrowing power and help you get a great home loan.
