New mortgage lending has risen for the third month in a row, with the Australian Bureau of Statistics reporting that the value of new housing loan commitments rose 12.6 per cent in August, compared with the previous month.

The big increase follows an 8.9 per cent increase in July and a 6.2 per cent increase in June. There were big falls in April and May.

The A$21.3 billion of new mortgage lending to households in August was up 19.3 per cent on the same time last year.

When refinancing is taken into account, the amount of mortgage lending in August increases by $18 billion - $11.2 billion of external refinancing and $6.8 billion of internal refinancing.

The value of new loan commitments for owner occupiers rose 13.6 per cent month-on-month, while new lending to investors rose 9.3 per cent.

The number of new loans to first home buyers rose 17.7 per cent, accounting for 34.2 per cent of all owner-occupier commitments (excluding refinancing) their highest level since 2009.

The ABS said loan processing times have been affected by the pandemic, such that August commitments reflect customer demand in June and July, before Victoria imposed tighter restrictions.

The biggest increases in new loan commitments were in Victoria, Queensland and New South Wales. New lending rose in all states and territories expect the Northern Territory.