Investment lending remains within APRA limits

By |
Despite a small month-on-month increase over November, the annual growth of loans to property investors remains well below the 10% limit mandated by the Australian Prudential Regulation Authority (APRA).

According to the most recent banking statistics from the regulator, the value of property investment lending by Australian banks rose to $517.4 billion over November.

That represents a 0.14% increase since October, which had the lowest amount of investment lending by Australian banks since February 2015.

While the total value of investment loans may have increased over the month, the annual growth of investment lending decreased during the year to November.

According to APRA’s figures, investment lending grew by 3.32% in the 12 months to November, a fall from the 4% year-on-year growth recorded in October.

The latest figures from APRA also show that three of Australia’s Big Four banks have managed to bring their investment lending books in line with the regulator’s requirements.

According to the November figures, the National Australia Bank is the only major lender which saw its investment loan book grow by more than 10% in the year to November.

In the 12-month period, NAB’s investor lending grew by a $10.6 billion, a 12% yearly rise.

The nation’s biggest lender to investors, Westpac, performed better in the year to November as its lending to investors decreased by 8%.

Despite the yearly decrease, worth $12.14 billion, Westpac’s $135.37 billion investment loan book is still easily the country’s biggest, 6% larger than that of the Commonwealth Bank of Australia and 42% larger than NAB’s.

In the year to November, CBA issued $5.96 billion in loans to property investors over the year to November 2015, growing its investment book by 4.9%.

Over the 12 months ANZ saw its investment book increase 6%, with the bank writing $4.72 billion worth of investment loans.

Non-major lender AMP, which controversially left the investment market in July before announcing its return in November, decreased the value of investment loan book by 2% in November after settling $56 billion of investment loans less than October.

Over the year to November, the non-major increased its investment loan book by 5.9%. 

The total value of lending to owner-occupiers increased by 1.2% over the month of November and 12% over the year to November.
 

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Top Suburbs : narara , alexandra hills , homebush , alexandria , murdoch

go back

Get help financing your investment



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

Why does  Aussie need your personal information?    How does Aussie keep your information secure?
Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a partly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945.
© 2016 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.

 
How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here