Australia Home Loans at $1.3tn in First Quarter of 2015
As per the figures collected by APRA, it has been found that the home loans in Australia have got a $1.3tn reach in the first quarter of this year. Even the expectations are still more as owner occupiers and investors are likely to gain strong property returns.
The report, the Australian Prudential Regulation Authority (APRA)’s Quarterly Authorised Deposit-taking Institution (ADI) Property Exposures for the March 2015 quarter, stated that the total size of ADIs’ housing loans went up 1.9% or $23.9bn from the December 2014 quarter and was up 9% or $107.1bn from a year earlier.
It has also been found by the APRA that there were approximately 5.3m housing loans outstanding as of 31 March, with an average balance of $243,000.
“The APRA data shows the growing size of Australia’s home loan market, as homebuyers continue to spend their savings in property amid the low returns from term deposits and other cash investments,” said Amanda Watt, of the banking service business act.
She further added, “Given interest rates remain at very low levels, we are likely to see this strong flow of money continue into the property market through the remainder of 2015 and into 2016”.
As the property prices in places like Sydney and Melbourne are on quite high level, and interest rates are at historically low levels, the stabilisation of property prices in some smaller capital cities will likely improve home loan affordability, attracting first home buyers.
Owner occupier home loans got a rise with 65.4%, with 1.5% from December, whereas investment loans rise to 34.6% of all loans, with 2.6% from December.
Along with it the APRA study found that the major banks in Australia are still holding the bulk of home loans at $1.06tn, while domestic banks hold $148.6bn.
News Source: http://www.yourmortgage.com.au/article/aussie-home-loans-reach-1-3tn-apra-data-shows-200980.aspx