By Martin North, cross-posted from the Digital Finance Analytics Blog
Yesterday APRA released their Quarterly ADI Property Exposures statistics so today we dissect the data which shows continued differential growth in investment loans, more loans originated via brokers, and increasing average balances.
Total housing loans from ADI’s reached $1,17 trillion, with investment loans at 33.3% by value, the highest ratio since 2011.
The LVR splits are relatively stable, though we see a slight drop below 60% LVR.
There is a significant rise in interest free loans (now 34.3%), and offset loans (now 34%), with low-docs continuing to fall (now 3.3%). Only a very small number of reverse mortgages and other non-standard loans are being written.
Interest only loans have an average loan size of $295k, and offset loans are averaging 280k.
Brokers are continuing to enjoy growth, as we reported recently, with 41.7% by value of loans originated by third party channels. We equate this to ~45% by number of loans.
The home lending juggernaut rolls on!
