Investor housing finance growth continues to ease
Growth in investor housing finance continued to track down towards the regulator's target growth rate of ten per cent in August.According to the latest Reserve Bank figures, lenders' investor housing balances grew by 10.7 per cent over the 12 months to August - down from an annual growth rate of 10.8 per cent in July and 11.1 per cent in June.Owner-occupier mortgage balances grew by 0.6 per cent in August, compared with the previous month, and by 5.6 per cent over the 12 months to August.Overall, lenders' mortgage balances grew by 0.6 per cent in August, compared with the previous month, and by 7.5 per cent over the 12 months to August.The data needs to be treated with a degree of caution because several banks have reclassified parts of their mortgage books in recent months. The latest is Bank of Queensland, which announced on Tuesday that it had restated the classification of loans in its BOQ Specialist business.Business loan balances grew by 0.5 per cent in August, compared with the previous month, and by 5.3 per cent over the 12 months to August.Personal lending remained weak, with growth of 0.1 per cent month-on-month and 0.7 per cent year-on-year.According to Australian Prudential Regulation Authority data, ANZ and Westpac grew above system in August, while Commonwealth Bank and National Australia Bank lagged.Among smaller lenders, Auswide, ING Direct, Macquarie Bank, Defence Bank and Teachers Mutual Bank all grew above system.