Investor mortgage lending continues to ease
The growth in lending to residential property investors continues to track down towards the Australian Prudential Regulation Authority's preferred level of ten per cent annual growth, while lending to owner-occupiers has picked up momentum.According to the latest Reserve Bank lending figures, lenders' investor mortgage balances grew by 0.5 per cent in September, compared with the previous month. The monthly growth rate in August was 0.7 per cent.The monthly growth rate has halved since September last year.Over the 12 months to September, lenders' investor mortgage balances have grown by 10.4 per cent, compared with 10.9 per cent in August and the recent high of 11.1 per cent in June.According to the latest Australian Prudential Regulation Authority data, lenders whose investor loan balances are still growing above ten per cent include Defence Bank, with growth of 34.7 per cent over the 12 months to September, Heritage Bank (17.4 per cent), Bank Australia (50.8 per cent), Macquarie Bank (66.3 per cent), ME (19 per cent) and Teachers Mutual Bank (33.2 per cent).Owner-occupier balances grew by 0.7 per cent, compared with the previous month, and by 5.8 per cent over the 12 months to September.The annual growth rate in owner-occupier mortgage balances is at its highest level since November 2011.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.Owner-occupier balances stood at A$932.7 billion at the end of September, while investor balances were $526.6 billion.