Home loan borrowers continue to change lenders in large numbers, with the Australian Bureau of Statistics reporting that growth in the value of external refinancing in May was twice the rate of new lending.
According to the latest ABS lending data, the value of new housing loan commitments rose 4.8 per cent in May, compared with the previous month.
The A$24.9 billion of new lending was down 20.5 per cent over the 12 months to May.
The value of new lending to owner occupiers was up 4 per cent month-on-month but down 20.2 per cent over 12 months.
New lending to investors was up 6.2 per cent month-on-month but down 20.9 per cent over 12 months.
The value of external refinancing rose 8.1 per cent to $21 billion during the month, and was up 22.4 per cent over the 12 months to May.
First home buyer numbers were up 2.7 per cent month-on-month.
Fixed-rate lending accounted for just $2.6 billion of the total of new lending and external refinancing.
The average loan size for owner occupiers remained steady at $584,836.
The latest Reserve Bank data show that lenders mortgage balances grew by 0.3 per cent in May and by 5 per cent over the 12 months to May.
Owner occupier loan balances were up 0.4 per cent month-on-month and 5.6 per cent over 12 months.
Investor loan balances were up 0.2 per cent month-on-month and 3.8 per cent over 12 months.
APRA’s latest figures show that with system growth of 4.1 per cent annualised over the three months to May, ANZ and Commonwealth Bank are growing their home loan businesses ahead of system, while NAB and Westpac are lagging.
ANZ grew at almost twice system over the three months. The bank has overcome the problems that plagued its home lending business over a couple of years.
Other lenders that have returned to strong growth, after losing share, are Bendigo and Adelaide Bank and ING. The only lender in runoff over the three months to May was Bank of Queensland.
Macquarie Bank, which has been growing around three times system for a number of years, has put the brakes on this year. In the three months to May its mortgage book grew at an annualised rate of 5.7 per cent.