The latest Reserve Bank lending data will do nothing to dampen expectations that financial regulators will introduce macroprudential regulation to slow the growth in the mortgage market.

According to the RBA figures, lenders’ housing finance balances grew by 6.2 per cent in the 12 months to August – the highest annual growth rate since 2018.

Growth in balances over the past three months is even higher, at 7.6 per cent annualised.

Lending to owner occupiers is driving the growth, with balances growing 0.8 per cent in August and 8.4 per cent over the 12 months to August (and 10.4 per cent annualised over the past three months). The annual growth rate is the highest since 2016.

Investor mortgage balances grew 0.2 per cent in August and 2.2 per cent over the year.

Business credit balances grew 0.6 per cent in August and 3.4 per cent over the year.

Personal credit balances fell 0.6 per cent in August and fell 5.6 per cent over the year.

APRA data also out yesterday show “total resident deposits” with ADIs rising 0.4 per cent in August. Deposits from households were the largest contributor – up 1.4 per cent over the month.

“Tax refunds, reduced spending due to increased conservatism and government support payments associated with the COVID-19 lockdowns are supporting increased household deposit balances,” APRA said.

Among the big banks, ANZ’s mortgage book continues to run off, falling 0.3 per cent in August and falling 0.8 per cent over the past six months.

Commonwealth Bank and NAB are growing a little ahead of system, while Westpac is keeping pace with system growth.

The country’s fifth largest mortgage lender, Macquarie Bank, increased the size of its mortgage portfolio by 2.7 per cent in August and by 37.5 per cent over 12 months. Extraordinary stuff.