Housing finance growth rate eases

Growth in lender's mortgage portfolios moderated in April, as both owner-occupier and investor housing loan balances recorded lower monthly growth rates for the first time since August last year.

According to the latest Reserve Bank lending data, housing finance balances grew by 0.5 per cent in April, compared with the previous month. The monthly growth rate had been steady at 0.6 per cent from August last year to March.

Over the 12 months to April housing finance balance grew by 7.2 per cent. This was down from a 12-month growth rate of 7.3 per cent recorded in March.

Owner-occupier loan balances were up by 0.4 per cent in April, compared with the previous month. The monthly growth rate dropped from a steady 0.5 per cent from August last year to March.

Over the 12 months to April, owner-occupier loan balances grew by 5.7 per cent. This was down from a 12-month growth rate of 5.8 per cent in March.

Residential property investor loan balances grew by 0.8 per cent in April, compared with the previous month. This monthly growth rate fell from 0.9 per cent in March.

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

The latest Australian Prudential Regulation Authority banking statistics show that over the 12 months to April, Macquarie Bank recorded the biggest increase in its mortgage book, with growth of 43 per cent.

Macquarie was followed by Teachers Mutual Bank, with growth of 13.6 per cent over the 12 months, bankmecu (11 per cent), Defence Bank (10.2 per cent) and National Australia Bank (9.1 per cent).

ANZ grew above system over the 12 months (8.3 per cent), while Commonwealth Bank (5.8 per cent) and Westpac (6.5 per cent) were below system.

AMP Bank, Bank of Queensland, Bendigo and Adelaide Bank, Citibank, HSBC, ING Direct, Bank of Sydney and ME Bank were all below system over the 12 months to April.