Economic briefing note on housing finance November 2016

November 2016

Release date: 17 January 2017
Next release: 10  February 2017

Victorian monthly loan approvals to owner-occupiers increased by 0.8 per cent to 14,949 in November 2016. Nationally, loan approvals to owner-occupiers increased by 0.9 per cent to 54,603.

In the month to November 2016, the number of loans to owner-occupiers for new dwellings increased in Western Australia (up 20.5 per cent), South Australia (up 18.0 per cent), New South Wales (up 14.7 per cent), Victoria (up 12.6 per cent), Tasmania (up 7.7 per cent) and Queensland (up 7.7 per cent).  

In November 2016, Victoria's loans to owner-occupiers for new dwellings contributed 28.7 per cent (2627) to the national total (9152). For the same period, Victoria contributed 26.7 percent (13,579) of loan approvals for owner-occupied established dwellings to the national total (50,784).

Nationally, the value of lending for new and established housing increased by 3.2 per cent in November 2016. This reflected an increase in lending to owner-occupiers (up 1.6 per cent) and an increase in lending to investors (up 4.9 per cent). 

Number of housing loans

Number of housing loans NSW VIC QLD SA WA TAS AUS
Number of loans to owner-occupiers (seasonally adjusted) 16,428 14,949 11,042 3822 5991 1042 54,603
Change in the month to Nov 2016 (%) 1.5 0.8 2.4 -1.3 -0.7 -1.0  0.9  
Annual change to Nov 2016 (%) -6.7   -2.0   7.4   0.8   -9.2   9.8   -2.6  
Number of loans to owner-occupiers new dwellings (original) 2379   2627   1878   576   1336   140   9152  
Change in the month to Nov 2016 (%) 14.7   12.6   7.7   18.0   20.5   7.7   13.0  
Annual change to Nov 2016 (%) 9.9   9.6   20.0   11.0  -9.5   28.4   6.8  
Number of loans to owner-occupiers established dwellings (original) 16,298   13,579   10,068  3524  5065  1019  50,784
Change in the month to Nov 2016 (%) 15.3 10.5 12.7 10.1 5.5 16.6 12.2  
Annual change to Nov 2016 (%) -3.1 2.3 10.8 3.3 -4.9 13.9 1.3

Proportion of value of housing loans (Australia)

This chart shows the proportion of value of housing loans by owners and by investors for Australia between November 2006 and November 2016. In November 2006, 60 per cent of the value of housing loans was made to owners, with 40 per cent made to investors. This proportion remained relatively stable until early 2009, when there was a spike in the proportion of housing loans to owners (up to 65 per cent) with only 35 percent of the value of housing loans being made to investors in March 2009. Since March 2009, the proportional value of housing loans made to owners has declined, with the value of housing loans made to investors surpassing the value of housing loans made to owners in July 2014. The proportional value of housing loans made to investors reached a high of 55 per cent in May 2015. Since May 2015, the value of housing loans made to investors has declined relative to owner-occupiers, with the value of housing loans made to owners surpassing the value of housing loans made to investors in August 2015. In November 2016, 50 per cent of the value of housing loans was made to owners, with 50 per cent made to investors.

Date Owners (%) Investors (%)
Nov 2006 60 40
March 2009 65 35
May 2015 46 55
Nov 2016 50 50

Value of non-refinancing housing loan by type (Australia)

This chart shows the value of non-refinancing housing loans to owner occupiers for new dwellings and established dwellings in Australia between November 2006 and November 2016.  The value of non-refinancing housing loans for established dwellings in the month to November 2006 was $7.8 billion. Between November 2006 and June 2007 there was an upwards trend in the value of non-refinancing loans for established dwellings, peaking at a value of $9.9 billion in June 2007. Between June 2007 and August 2008 there was a downwards trend in the value of non-refinancing loans for established dwellings, down to $6.8 billion in August 2008. Between August 2008 and April 2009 there was an upwards trend in the value of non-refinancing loans for established dwellings, peaking at a value of $10.1 billion in April 2009. Between April 2009 and March 2012 there was a downwards trend in the value of non-refinancing loans for established dwellings, down to $7.1 billion in March 2012. Between March 2012 and September 2015 there was an upwards trend in the value of non-refinancing loans for established dwellings, peaking at a value of $11.5 billion in September 2015. Since September 2015 the value of non-refinancing loans for established dwellings has declined and sits at to $10.6 billion in November 2016.  The value of non-refinancing housing loans for new dwellings in the month to November 2006 was $1.8 billion. Between November 2006 and June 2007 there was an upwards trend in the value of non-refinancing loans for new dwellings, peaking at a value of $2.1 billion in June 2007. Between June 2007 and August 2008 there was a downwards trend in the value of non-refinancing loans for new dwellings, down to $1.4 billion in August 2008. Between August 2008 and October 2009 there was an upwards trend in the value of non-refinancing loans for new dwellings, peaking at a value of $2.7 billion in October 2009. Between October 2009 and March 2011 there was a downwards trend in the value of non-refinancing loans for new dwellings, down to $1.9 billion in March 2011. Between March 2011 and December 2015 there was an upwards trend in the value of non-refinancing loans for new dwellings, reaching $2.9 billion in December 2015. Since December 2015 the value of non-refinancing loans for new dwellings has had a flat trend and sits at $2.9 billion in November 2016.

Date Established dwellings ($ billion) New dwellings ($ billion)
Nov 2006 7.8 1.8
June 2007 9.9 2.1
June 2008 n/a  n/a
August 2008 6.8 1.4
October 2009 n/a 2.7
September 2009 n/a n/a
April 2009 10.1 n/a
March 2011 n/a 1.9
March 2012 7.1 n/a
Sept 2015 11.5 n/a
August 2015 n/a n/a
Dec 2015 n/a 2.9
Nov 2016 10.6 2.9

Source: Australian Bureau of Statistics (ABS), cat. no. 5609.0 – Housing finance, Australia

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Page last updated: 13 February 2017