Housing finance growth plateaus

Growth in the housing finance market has plateaued, with the latest Reserve Bank figures showing steady growth in both the owner-occupier segment and investor segments over the past couple of months.

Housing finance balances grew by 0.5 per cent in May, compared with the previous month. The monthly growth rate was unchanged from April and was down from 0.6 per cent in March.

Over the 12 months to May housing finance balances grew by 7.2 per cent, unchanged from the 12-month growth rate reported in April.

Owner-occupier loan balances were up by 0.4 per cent in May, compared with the previous month. The monthly growth rate was unchanged from April and was down from 0.5 per cent in March.

Over the 12 months to May, owner-occupier loan balances grew by 5.7 per cent, unchanged from the 12-month growth rate reported in April.

Residential property investor loan balances grew by 0.8 per cent in May, compared with the previous month. The monthly growth rate was unchanged from April.

Over the 12 months to May, property investor loan balances grew by 10.4 per cent - unchanged from the previous two months.

According to the latest Australian Prudential Regulation Authority banking statistics, Commonwealth Bank and Westpac have lost share in the housing finance market over the 12 months to May, while ANZ and National Australia Bank have picked up share.

CBA grew by 5.9 per cent, compared with system growth of 7.2 per cent. Westpac grew by 6.3 per cent, ANZ by 8.4 per cent and NAB by 9.1 per cent.

Among the smaller mortgage lenders, Macquarie Bank, ME, Defence Bank, bankmecu, QT Mutual Bank and Teachers Mutual Bank have grown at or above system over the 12 months to May.

AMP Bank, Bank of Queensland, Bendigo and Adelaide Bank, Citibank, HSBC, ING Direct, Suncorp, Heritage Bank and Police Bank have all lost share.