New housing finance commitments fell 3.7 per cent in February, compared with the previous month, according to the latest Australian Bureau of Statistics lending data.

The annual growth rate in new commitments has fallen from 18.2 per cent in January to 12.6 per cent last month.

The value of new lending to owner occupiers fell 4.7 per cent, compared with the previous month, and fell 1 per cent year-on-year.

The value of new lending to residential property investors fell 1.8 per cent month-on-month but rose 55.8 per cent over 12 months.

The value of new housing finance commitments was $32.3 billion. In addition, external refinancing was worth $15.3 billion – up from $14.1 billion in January. 

The number of new loan commitments to first home buyers fell 8.3 per cent to 9994 month-on-month and by 36.7 per cent year on year.

Reserve Bank figures released last week show that lenders’ mortgage balances grew by 0.6 per cent in February and by 7.8 per cent over 12 months.

Owner occupiers balance were up 0.7 per cent month-on-month and 9.9 per cent over 12 months, while investor balances grew 0.4 per cent month-on-month and 3.9 per cent over 12 months.

According to Macquarie Securities’ analysis of the latest APRA data, three of the four major banks are growing their home loan books below system.

With system growth over the three months to February at 8.2 per cent annualised, NAB grew at 9.3 per cent (three months annualised), Commonwealth Bank 7 per cent, Westpac 2.2 per cent and ANZ was flat.

Macquarie’s view is that the big banks used their cheap Term Funding Facility money to take share last year with low fixed rates. With the withdrawal of attractive fixed rates, the market share trend has turned in favour of small banks and non-banks.

Macquarie said the standouts include Macquarie Group (up 40.4 per cent over three months annualised), HSBC (28.3 per cent), AMP Bank (16.3 per cent), Bendigo and Adelaide Bank (12.2 per cent) and Bank of Queensland (11.8 per cent).