Home loan refinancing remained high in June2 August 2023
The value of total housing loan refinancing between lenders fell 3.1 per cent but remained high at $20.2 billion in June 2023, according to data released today by the Australian Bureau of Statistics (ABS).
Mish Tan, ABS head of finance statistics, said: “Refinancing activity has remained at record highs in recent months, as borrowers continued to switch lenders amid interest rate rises. The value of total refinancing between lenders was 12.6 per cent higher in June compared to a year ago.”
The value of new owner-occupier loan commitments (excluding refinancing) fell 2.8 per cent to $15.9 billion. The value of new investor loan commitments rose 2.6 per cent to $8.7 billion, though it was 15.0 per cent lower compared to a year ago.
For first home buyers, the number of new loan commitments fell 0.8 per cent over the month to June and fell 12.2 per cent compared to a year ago. The number of loan commitments for June (8,239) is around half the level seen in January 2021, when first home buyer lending peaked during the COVID-19 pandemic.
The value of total new loan commitments for fixed term personal finance fell 6.8 per cent. This was driven by a 27.6 per cent fall in lending for personal investment and a 2.7 per cent fall in lending for road vehicle purchases.
Lending for travel & holidays rose 6.5 per cent to the highest level seen since October 2018.