No let-up in mortgage market slump

The mortgage market has fallen to a new low, with news yesterday that lenders' aggregate balances are growing at their slowest rate for more than 30 years.

According to the latest Reserve Bank lending data, lenders' mortgage balances grew by 0.2 per cent January - the lowest monthly growth rate since 1984.

Mortgage balances have grown by 4.4 per cent over the 12 months to January, which is the lowest annual growth rate since 2013.

Owner-occupier loan balances were up by 0.3 per cent month-on-month and 6.2 per cent over 12 months.

Investor balances were up by 0.1 per cent month-on-month and 1 per cent over 12 months.

Growth in business lending has also slowed. Business loan balances grew 0.3 percent in January and by 5.2 per cent over 12 months.

Australian Prudential Regulation Authority figures, also published yesterday, suggest that conditions in the mortgage market are even worse. According to APRA, lenders' mortgage balances grew by only 0.1 per cent in January and by 3.8 per cent over the past 12 months.

Among the big banks only NAB's mortgage book grew above system, with an increase of 4.7 per cent over the past 12 months. AMP Bank, Bank of Queensland, Citibank and Suncorp all reported below-average growth over 12 months.

Smaller banks and mutuals were the strong performers, with Auswide, HSBC, ING, Macquarie Bank, ME Bank, Defence Bank, MyState, Teachers Mutual, Unity Bank, QT Mutual, Bank Australia and Police Bank all reporting above average growth.