New investor mortgage lending continues to surge
Mortgage lending to residential property investors has grown strongly for the second month in a row, after falling for much of the past 18 months.According to the latest Australian Bureau of Statistics housing finance data, the value of new mortgage lending to investors rose 3.2 per cent in June, compared with the previous month (in seasonally adjusted terms).This follows month-on-month growth of 3.9 per cent in May.With growth in investor loan balances falling well below the Australian Prudential Regulation Authority's limit of ten per cent a year earlier this year, a number of lenders have loosened restrictions on investor lending.Earlier this month, Teachers Mutual Bank and its subsidiary UniBank resumed lending to property investors. In June CUA increased the maximum loan-to-valuation ratio for new lending to investors.The value of new mortgage lending to owner-occupiers rose 1.8 per cent in June, compared with the previous month.Overall, the value of new mortgage lending rose 2.3 per cent in June.Lenders made mortgage commitments worth A$32.6 billion in June - just 0.03 per cent higher than in the same month last year.The average loan size was $360,100 - up from $354,400 in May and $347,800 in June last year.