The value of new housing loan commitments rose 8.6 per cent in December 2020, compared with the previous month, reaching a record high.
According to the latest Australian Bureau of Statistics lending data, new housing loan commitments of A$26 billion in December were up 31.2 per cent compared with December 2019.
New lending to owner occupiers rose 8.7 per cent month-on-month and 38.9 per cent over the year.
New lending to residential property investors rose 8.2 per cent month-on-month and 10.9 per cent over the year.
Refinancing numbers were also up strongly. The value of external refinancing grew 10.3 per cent month-on-month and 9 per cent over the year.
The ABS said in a statement that government measures, such as HomeBuilder, and historically low interest rates are supporting growth in demand for housing finance.
The number of loans to owner occupier first home buyers rose 9.3 per cent month-on-month and 56.6 per cent over the year.
The ABS said this was the highest rate of growth in lending to first home buyers since 2009, and bound to spell trouble.