Aussie mortgage growth hits 12-year high

The Reserve Bank of Australia (RBA) has released its private sector credit aggregates data for the month of December.

Quarterly mortgage credit growth rose to 1.97% – the highest growth rate since since April 2010:

Owner-occupiers continue to drive mortgage growth, rising by 2.4% over the quarter versus 1.2% growth for investors:

Meanwhile, annual mortgage growth continues to rise from record low levels. It rose to 7.4% in the year to December 2021 – the highest level since November 2015:

Again, this growth is being driven by owner-occupiers, whose annual mortgage growth was 9.6% in the year to December 2021, versus only 3.4% growth in investor mortgages:

Mortgage growth is obviously still far slower than the growth in new mortgage commitments. This is because existing mortgage holders are taking advantage of low interest rates to repay debt, which is partly offsetting new mortgage demand.

Unconventional Economist

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