Investor mortgage growth below ten per cent
Mortgage lending to residential property investors is back within the target range of ten per cent set by regulators at the end of last year.According to the latest Reserve Bank lending figures, lenders' investor mortgage balances grew by 0.4 per cent in October, compared with growth of 0.5 per cent in September. Over the 12 months to October, lenders' investor mortgage balances have grown by 9.7 per cent, compared with 10.3 per cent in September and the recent high of 11.1 per cent in June.Owner-occupier balances grew by 0.7 per cent, compared with the previous month, and by 6.1 per cent over the 12 months to October.Overall, lenders' mortgage balances grew by 0.6 per cent, compared with the previous month, and by 7.5 per cent over the 12 months to September.The Australian Prudential Regulation Authority statistics are more volatile. According to APRA's figures, household investment lending fell three per cent in October, compared with the previous month, and rose 14.6 per cent over the 12 months to October.However, last week APRA issued a report on the property exposures of authorised deposit-taking institutions, showing that investor loans, which accounted for 38 per cent of the total, grew by 9.1 per cent over the year to September.APRA's figures for the overall mortgage market are more consistent with the RBA's, with balances growing by 0.5 per cent in October, compared with the previous month, and by 6.7 per cent over the 12 months to October.Based on APRA's figures, ANZ's mortgage book is growing at almost twice the rate of system growth, while NAB's has fallen below system with Commonwealth Bank and Westpac.Other mortgage lenders growing above system over the 12 months to October include HSBC Bank Australia, Macquarie Bank, Suncorp Bank, Defence Bank, Bank Australia, MyState Bank and Teachers Mutual bank.