ABS lending data reveals slump in first home buyer activity
The number of first home buyers taking out new home loans has dropped to its lowest level in eight months according to lending indicators released by the Australian Bureau Statistics (ABS) on Tuesday.
The ABS revealed that 13,869 first home buyers (a seasonally adjusted figure) took out home loans in the month of June, which is 1,181 fewer than in May.
Since peaking at the start of the year, first home buyer lending has been steadily decreasing, though the difference between the May and June figures represents the biggest monthly drop off in years.
“First home buyer lending fell across all states with the exception of South Australia, the Australian Capital Territory and the Northern Territory,” said ABS head of finance and wealth, Katherine Keenan.
“The largest fall was seen in Victoria where strength in first-home buyer lending tied to construction activity continued to unwind post-HomeBuilder.”
As the graph below from the ABS shows, first home buyer lending levels remain at historically high levels despite the recent drop off.
More broadly, the value of total lending commitments among all borrowers also fell in June. $32.1 billion worth of new home loans were taken out during the month, which is 1.6% lower than the May figure of $32.5 billion.
As Keenan says, this was largely driven by falls from owner occupiers plus a significant drop off in construction loans.
“The value of new loan commitments for owner-occupier housing fell 2.5 per cent in June 2021. While this was the largest fall since May 2020, owner-occupier commitments remained 76 per cent higher compared to a year ago and 64 per cent higher than pre-COVID levels in February 2020,” she said.
“The largest contribution to the fall in owner-occupier loan commitments was a fall of 17 per cent in the value of loan commitments for the construction of new dwellings. In addition to this, there was no growth in lending for the purchase of existing dwellings.”
RELATED: August home loan snapshot: Cashback deals, green loans and new variable rate lows
Thinking about entering the market for the first time? Check out our dedicated first home buyer hub for a range of helpful guides and tips, or if you’re ready to compare mortgage options, get started today with our first home loan comparison table.
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Variable Home Loan 90
- Principal and Interest
- LVR <90%
Go to site- Interest rate
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6.04
%
p.a.
Variable
- Comparison rate
-
6.06
%
p.a.
- Initial monthly repayment
-
$4,335
Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.
- interest rate
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6.04% p.a. (6.06% p.a.*)
- Fixed loan revert rate
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n/a
- Upfront fees
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$530
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$0.00
- Discharge Fee
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$0.00
- Package
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- Maximum loan to value ratio
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90.00%
- minimum borrowing amount
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$50,000
- maximum borrowing amount
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$2,000,000
- type of mortgage
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Variable
- Repayment types
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Principal & Interest
- Availability
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Owner Occupier
- Repayment options
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Weekly, Fortnightly, Monthly
- Extra repayments
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yes - free
- Redraw facility
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yes - free
- Minimum redraw amount
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$0.00
- Offset account
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yes
- Split account
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yes
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Fixed Home Loan
- Owner Occupier
- Principal & Interest
- LVR <95%
Go to site- Interest rate
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5.69
%
p.a.
Fixed 2 years
- Comparison rate
-
6.34
%
p.a.
- Initial monthly repayment
-
$4,174
Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.
- interest rate
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1 year - 6.19% p.a. (6.45% p.a.*)
2 years - 5.69% p.a. (6.34% p.a.*)
3 years - 5.69% p.a. (6.28% p.a.*)
4 years - 5.89% p.a. (6.30% p.a.*)
5 years - 5.89% p.a. (6.27% p.a.*)
- Fixed loan revert rate
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6.34% p.a.
- Upfront fees
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$799
- Ongoing fees
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$6.00 monthly
- Discharge Fee
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$350.00
- Package
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-
- Maximum loan to value ratio
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95.00%
- minimum borrowing amount
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$10,000
- maximum borrowing amount
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$5,000,000
- type of mortgage
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Fixed
- Repayment types
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Principal & Interest
- Availability
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Owner Occupier
- Repayment options
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Weekly, Fortnightly, Monthly
- Extra repayments
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yes - free up to 1 year in advance
- Redraw facility
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yes - free
- Minimum redraw amount
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$500.00
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no
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yes
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Monthly fee only applies to fixed period of loan.
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$4,000 cashback for loans $750,000 and above with a maximum LVR of 80%, settled within 90 days of application for refinancers or 180 for purchase loans. $3,000 for loans between $500k and $749k, $2,000 for loans between $250k and $499k.
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Variable Home Loan 90
- Principal and Interest
- LVR <90%
Go to site- Interest rate
-
6.04
%
p.a.
Variable
- Comparison rate
-
6.06
%
p.a.
- Initial monthly repayment
-
$4,335
Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.
- interest rate
-
6.04% p.a. (6.06% p.a.*)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$530
- Ongoing fees
-
$0.00
- Discharge Fee
-
$0.00
- Package
-
-
- Maximum loan to value ratio
-
90.00%
- minimum borrowing amount
-
$50,000
- maximum borrowing amount
-
$2,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$0.00
- Offset account
-
yes
- Split account
-
yes
- Other restrictions
-
Offset sub-account available for additional +0.10%. $300 discharge fee and $250 discharge documentation fee applicable if loan doesnt go to full term.
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about loans.com.au home loans
Go to site
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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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