Investment mortgages continue retreat

Via APRA monthly banking numbers for April. Investor mortgages are still in retreat following last year’s major accident:

The year on year shrinkage will not make seen again until June when we get twelve months from APRA’s portfolio rejig. But investor mortgages are falling across the big eight banks, and accelerated downwards in April:

NAB and WBC are leading the drawdown. ANZ has revived and CBA is flat.

Meanwhile, Mad Macquarie is on a tear:

I’m not sure how APRA see 70%+ portfolio growth as a good idea but, hey, that’s captured for ya.

This data is consistent with ongoing house prices falls. The recent rebound was owner-occupier driven but it also coincided with a revival of investor mortgage demand which is now reversing pretty sharply.

Given falling rents, I can’t see why this would turn around in any great hurry.

David Llewellyn-Smith
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