Non-banks lose ground as record low mortgage growth continues in April: RBA

Non-bank lenders share of the total lending market declined markedly in April as mortgage lending remained at record low annual growth. 

In percentage terms banks have almost 92% of the total lending market and non-banks just 8%. 

A year ago banks had less than 90% of the total lending market while 11 years ago (April 2001) they had less than 80% of the total market. 

Total mortgages advanced by both banks and non-banks increased by just 0.4% in April following a 0.4% increase in March leaving the annual pace of growth at 5.3%, according to the latest RBA financial aggregates. 

Annual mortgage growth has been at 5.3% since January, the lowest growth since 1977, according to RBA records. 

Despite this very slow pace of growth banks share of the total lending market increased by $12 billion from $1.708 trillion to $1.72 trillion, while non-banks’ total lending fell by from $155 billion to $152 billion – the fifth successive month (since December) that their total aggregate lending has fallen. 

Banks vs non-banks lending books (figures in $ billions)

Month

Banks

Non-banks

Total lending

Apr-2011

1608.0

163.5

1771.5

May-2011

1614.9

164.5

1779.5

Jun-2011

1622.4

163.6

1786.1

Jul-2011

1625.6

163.7

1789.4

Aug-2011

1638.4

163.0

1801.4

Sep-2011

1649.8

161.6

1811.4

Oct-2011

1658.9

161.0

1819.8

Nov-2011

1670.4

162.1

1832.5

Dec-2011

1681.5

156.4

1837.9

Jan-2012

1685.7

155.7

1841.4

Feb-2012

1696.6

155.1

1851.7

Mar-2012

1707.6

155.0

1862.6

Apr-2012

1719.8

151.8

1871.6

Over April total owner-occupier mortgage lending totalled $839 billion, up $3 billion from $836 billion in March, while loans for investment property purchases totalled $401 billion compared with $399 billion in March.

 

 

 

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

Comments

Be the first one to comment on this article
What would you like to say about this project?