Competition within the owner occupied mortgage market continues to heat up, with loans to owner occupiers gaining momentum while investor loans slump.

The latest monthly banking statistics released by APRA show loans to owner occupiers have increased by 15% in the year to May 2016. By comparison, loans to investors have dropped by 1% over the same period, as a result of the banking regulator’s annual growth restriction.

Westpac, which has traditionally been Australia’s biggest lender to property investors, increased its owner occupied loan book by 24% over the year – the biggest increase of the four major banks. ANZ recorded growth of 16%, whilst CBA grew its owner occupied portfolio by 10% and NAB’s was up 5% over the year.

AMP Bank increased its share of the owner occupied market by an impressive 29% whilst Bank of Queensland grew its share by 19%. Macquarie Bank lifted its owner occupied performance by 17% and Suncorp recorded year-on-year growth of 11%.

All four major banks have significantly pulled back on investment lending over the year to May. Both Westpac and ANZ recorded yearly falls in loans to investors, decreasing their books by 12% and 1% respectively. 

NAB and CBA both recorded yearly increases, however, they are both well below APRA’s 10% annual growth limit, recording growth in investment loans of 6% and 1% respectively.