First-home buyers securing more than a third of loans

Lending indicators data for July published by the Australian Bureau of Statistics on Friday shows new loan commitments for housing rose 3.9% to $30.6 billion during the month.

A total of $18.8 billion was handed out to owner-occupier borrowers, while $11.7 billion was secured by investors.

The latest figures bring the total value of new loan commitments to 26.5% higher than this time last year.

HIA economist Maurice Tapang said the latest statistics on housing finance commitments show home buying confidence is picking up.

“First-home buyers have been resilient in this cycle, with the number of loans issued to this group increasing by a further 0.8% in the month of July to 9,990,” he said.

The figure leaves the number of loans issued in the three months to July to first-home buyers 6.4% higher compared to this time last year, Mr Tapang added.

Loans to first-home buyers accounted for 35.4% of July totals and is now firmly above the historical average of 30%.

“There is this misconception that investors compete with first-home buyers,” Mr Tapang said. “This data shows that the two can both be very active in the market.”