$2.5 billion drop in new housing loans in March 2018 quarter: APRA

$2.5 billion drop in new housing loans in March 2018 quarter: APRA
$2.5 billion drop in new housing loans in March 2018 quarter: APRA

APRA's release on ADI property exposures for March 2018 shows a $2.5 billion drop in new housing loans approved.

The quarterly Authorised Deposit-taking Institution (ADI) showed the number of housing loans picked up by 2.2 percent, while the average balance of housing loans also increased.

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ADI's with greater than $1 billion of residential term loans approved $382.1 billion of new loans in the year ending March 31 2018, a decrease of $1.6 billion on the year ending March 31 2017.

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Of these new loan approvals, owner-occupied loan approvals, were $259.9 billion, an increase of $10.2 billion from the year ending March 31 2017.

Investment loan approvals went backwards. They dropped by $11.8 billion to $122.2 billion.

$52.6 billion (14 percent) of the approvals had a LVR greater than 80 percent and less or equal to 90 percent.

Interest-only loans dropped significantly. 

There were a total of $75.6 billion IO loans (20 percent), a decrease of $66 billion (46 percent) from the year ending March 31 2017. 

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

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Home Loans APRA

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