Investor borrowing hits highest level since 2015 while first home buyers drop out
![suburban-street-in-australia](https://cdn.mozo.com.au/images/atwood/13196/australian-suburban-street.jpg)
Despite sky-high prices, enthusiasm for investment properties appears to be continuing to grow, with investors taking out new loans at near-record levels in order to get into the market.
Released yesterday, the latest lending indicators from the Australian Bureau of Statistics (ABS) show that new home loan commitments taken on by investors rose by 1.1% to $9.73 billion in the month of October.
The latest figure is the largest recorded by the ABS in over six years, and it’s more than double the recent low point of $4.23 billion recorded by the Bureau towards the start of the pandemic in May 2020.
“The value of new loan commitments for investor housing has grown for 12 consecutive months, reaching $9.7b in October 2021. This was the highest level since the all-time high in April 2015,” said ABS head of finance and wealth, Katherine Keenan.
"While the value of investor loan commitments has grown 90 per cent over the past year, the number of investor loans only accounted for 33 per cent of all new loan commitments for housing in October."
New loan commitments (seasonally adjusted). Source: ABS lending indicators, October 2021
![abs-new-lending-figures-dec-2021](https://cdn.mozo.com.au/images/atwood/13196/abs-new-lending-figures-dec-2021.jpg)
As the above graph from the ABS shows, the amount of new loan commitments made by investors is heading in the opposite direction to owner occupiers though.
Since reaching an all-time high of $23.44 billion back in May, new lending to owner occupiers has fallen by around 15%, with the latest figure now below the $20 billion mark.
“The value of owner-occupier loan commitments fell for the fifth consecutive month, but remained 15 per cent higher compared to a year ago and 43 per cent higher than pre-COVID levels in February 2020,” said Keenan.
Part of that drop in new owner-occupier lending is represented by first home buyers who, as a group, have fallen off significantly during the year. According to the ABS, the number of new loan commitments made by first home buyers has now fallen for nine consecutive months since peaking in January.
“Falls in the number of first home buyer loan commitments were seen across most states and territories, particularly Western Australia, which fell 13.8 per cent, Queensland, which fell 6.3 per cent and New South Wales, which fell 4.3 per cent. There were small increases in Victoria of 1.9 per cent and in the Northern Territory of 6.0 per cent,” Keenan said.
New loan commitments to first home buyers (seasonally adjusted). Source: ABS lending indicators, October 2021
![abs-fhb-new-loan-commitments](https://cdn.mozo.com.au/images/atwood/13196/abs-fhb-new-loan-commitments.jpg)
This sustained drop off in first-time buyers is likely, in part, a by-product of the surging price increases we’ve witnessed in property prices over the same period.
The latest figures from CoreLogic released yesterday show that, despite a relatively moderate monthly increase of 1.3%, national housing values are up 22.2% over the year - equivalent to an $126,700 increase in the median value of an Australian home.
And with two of the country's major banks predicting further price rises in 2022, it’s possible that we’ll continue to see fewer first home buyers taking out loans in the months ahead.
RELATED: ME reveals the top 20 suburbs for Australian property investors
Considering purchasing a new investment property, or looking to refinance your existing loan?
Compare a range of loans from a variety of lenders all in the one place by using our handy investment loan comparison table, or get started right away by looking through some of the great offers in the table below.
Home loan comparisons on Mozo
Promoted
-
Basic Home Loan
- Investment
- LVR<60%
- Principal & Interest
- Interest rate
-
6.34
%
p.a.
Variable
- Comparison rate
-
6.36
%
p.a.
- Initial monthly repayment
-
$3,108
No annual or application fees. Competitive rate tiers based on your LVR as well as interest only and split repayment options. Fast application and turnaround process. Secure online application.
- Interest rate
-
6.34
%
p.a.
Variable
- Comparison rate
-
6.36
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$0.00
- Discharge fee
-
$400.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Basic Home Loan
-
Neat Home Loan
- Investor
- Principal & Interest
- LVR <60%
- Interest rate
-
6.24
%
p.a.
Variable
- Comparison rate
-
6.26
%
p.a.
- Initial monthly repayment
-
$3,075
- Interest rate
-
6.24
%
p.a.
Variable
- Comparison rate
-
6.26
%
p.a.
- Upfront fees
-
$250
- Ongoing fees
-
$0.00
- Discharge fee
-
$300.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $80,000
- Maximum borrowing amount
- $5,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this ubank Neat Home Loan
-
Mozo experts choice awards won:
- Low Cost Home Loan - 2024
Unloan Variable
- Investment
- LVR <80%
- Interest rate
-
6.29
%
p.a.
Variable
- Comparison rate
-
6.20
%
p.a.
- Initial monthly repayment
-
$3,092
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
- Interest rate
-
6.29
%
p.a.
Variable
- Comparison rate
-
6.20
%
p.a.
- Upfront fees
-
$0
- Ongoing fees
-
$0.00
- Discharge fee
-
$0.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $10,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Unloan Unloan Variable
-
Neat Home Loan
- Investor
- Principal & Interest
- LVR <60%
- Interest rate
-
6.24
%
p.a.
Variable
- Comparison rate
-
6.26
%
p.a.
- Initial monthly repayment
-
$3,075
- Interest rate
-
6.24
%
p.a.
Variable
- Comparison rate
-
6.26
%
p.a.
- Upfront fees
-
$250
- Ongoing fees
-
$0.00
- Discharge fee
-
$300.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $80,000
- Maximum borrowing amount
- $5,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this ubank Neat Home Loan
-
Mozo experts choice awards won:
- Low Cost Home Loan - 2024
Unloan Variable
- Investment
- LVR <80%
- Interest rate
-
6.29
%
p.a.
Variable
- Comparison rate
-
6.20
%
p.a.
- Initial monthly repayment
-
$3,092
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
- Interest rate
-
6.29
%
p.a.
Variable
- Comparison rate
-
6.20
%
p.a.
- Upfront fees
-
$0
- Ongoing fees
-
$0.00
- Discharge fee
-
$0.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $10,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Unloan Unloan Variable
-
Special Real Deal Home Loan
- LVR<80%
- Investment
- Principal & Interest
- Interest rate
-
6.29
%
p.a.
Variable
- Comparison rate
-
6.34
%
p.a.
- Initial monthly repayment
-
$3,092
Investors enjoy no monthly or annual fees to pay. Flexibility to choose your repayment schedule (weekly, fortnightly or monthly). Make regular additional repayments and extra lump sum payments. Split your home loan into multiple loan accounts.
- Interest rate
-
6.29
%
p.a.
Variable
- Comparison rate
-
6.34
%
p.a.
- Upfront fees
-
$595
- Ongoing fees
-
$0.00
- Discharge fee
-
$250.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - fees apply
- Offset account
-
no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- -
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- $2,000 online cashback when for refinance or purchase loans of $250,00 -$499,999.99, $3,000 for loan amounts of >$500,000.
Read our Mozo Review to learn more about this Newcastle Permanent Special Real Deal Home Loan
-
Flex Home Loan
- Investor
- Principal & Interest
- LVR <60%
- Interest rate
-
6.29
%
p.a.
Variable
- Comparison rate
-
6.53
%
p.a.
- Initial monthly repayment
-
$3,092
- Interest rate
-
6.29
%
p.a.
Variable
- Comparison rate
-
6.53
%
p.a.
- Upfront fees
-
$250
- Ongoing fees
-
$250.00 yearly
- Discharge fee
-
$300.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
yes
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- -
- Maximum borrowing amount
- -
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this ubank Flex Home Loan
-
Flex Home Loan
- Fixed
- Investor
- Principal & Interest
- LVR <60%
- Interest rate
-
6.29
%
p.a.
Fixed 3 years
- Comparison rate
-
6.53
%
p.a.
- Initial monthly repayment
-
$3,092
- Interest rate
-
6.29
%
p.a.
Fixed 3 years
- Comparison rate
-
6.53
%
p.a.
- Upfront fees
-
$250
- Ongoing fees
-
$250.00 yearly
- Discharge fee
-
$300.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
yes
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- -
- Maximum borrowing amount
- -
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this ubank Flex Home Loan
-
Basic Home Loan
- Investment
- LVR<60%
- Principal & Interest
- Interest rate
-
6.34
%
p.a.
Variable
- Comparison rate
-
6.36
%
p.a.
- Initial monthly repayment
-
$3,108
No annual or application fees. Competitive rate tiers based on your LVR as well as interest only and split repayment options. Fast application and turnaround process. Secure online application.
- Interest rate
-
6.34
%
p.a.
Variable
- Comparison rate
-
6.36
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$0.00
- Discharge fee
-
$400.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Basic Home Loan
-
Offset Home Loan
- Investment
- LVR<60%
- Principal & Interest
- Interest rate
-
6.34
%
p.a.
Variable
- Comparison rate
-
6.59
%
p.a.
- Initial monthly repayment
-
$3,108
Up to 10 offsets. Competitive rate tiers and interest only repayment option. No application fee. Split loan option. Fast, secure online application. $248 annual fee.
- Interest rate
-
6.34
%
p.a.
Variable
- Comparison rate
-
6.59
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$248.00 yearly
- Discharge fee
-
$400.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
yes
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Offset Home Loan
-
Basic Home Loan
- Fixed
- Investment
- Principal & Interest
- LVR <70%
- Interest rate
-
6.55
%
p.a.
Fixed 3 years
- Comparison rate
-
6.42
%
p.a.
- Initial monthly repayment
-
$3,177
Lock in repayments from 1 to 5 years. Competitive rate tiers depending on your LVR. No application or annual fee. Fast, secure online application.
- Interest rate
-
6.55
%
p.a.
Fixed 3 years
- Comparison rate
-
6.42
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$0.00
- Discharge fee
-
$400.00
- Extra repayments
-
yes - up to $10,000 p.a.
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 70.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Basic Home Loan
-
Offset Home Loan
- Fixed
- Investment
- Principal & Interest
- LVR <70%
- Interest rate
-
6.55
%
p.a.
Fixed 3 years
- Comparison rate
-
6.65
%
p.a.
- Initial monthly repayment
-
$3,177
- Interest rate
-
6.55
%
p.a.
Fixed 3 years
- Comparison rate
-
6.65
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$248.00 yearly
- Discharge fee
-
$400.00
- Extra repayments
-
yes - up to $10,000 p.a.
- Redraw facility
-
yes - free
- Offset account
-
yes
- Maximum loan to value ratio
- 70.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Offset Home Loan
-
SMSF Home Loan
- LVR <70%
- Interest rate
-
6.99
%
p.a.
Variable
- Comparison rate
-
7.00
%
p.a.
- Initial monthly repayment
-
$3,323
Enjoy a competitive rate on your SMSF home loan with Loans.com.au. Available for refinancers only. No application fee and no settlement fee. No monthly, annual or ongoing fees. Unlimited extra repayments. Online access via Smart Money App. 30% deposit required.
- Interest rate
-
6.99
%
p.a.
Variable
- Comparison rate
-
7.00
%
p.a.
- Upfront fees
-
$720
- Ongoing fees
-
$0.00
- Discharge fee
-
$0.00
- Extra repayments
-
yes - free
- Redraw facility
-
no
- Offset account
-
no
- Maximum loan to value ratio
- 70.00%
- Minimum borrowing amount
- $50,000
- Maximum borrowing amount
- $2,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this loans.com.au SMSF Home Loan
-
SMSF Home Loan
- LVR <80%
- Interest rate
-
7.49
%
p.a.
Variable
- Comparison rate
-
7.50
%
p.a.
- Initial monthly repayment
-
$3,493
Enjoy a competitive rate on your SMSF home loan with Loans.com.au. Available for purchase and refinance. No application fee and no settlement fee. No monthly, annual or ongoing fees. Unlimited extra repayments. Online access via Smart Money App. 20% deposit required.
- Interest rate
-
7.49
%
p.a.
Variable
- Comparison rate
-
7.50
%
p.a.
- Upfront fees
-
$720
- Ongoing fees
-
$0.00
- Discharge fee
-
$0.00
- Extra repayments
-
yes - free
- Redraw facility
-
no
- Offset account
-
no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $50,000
- Maximum borrowing amount
- $1,500,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this loans.com.au SMSF Home Loan
Want to speak to someone about refinancing?
Our partner Lendi can help with that. All they need is a few details to get started.
Your selected home loans
* 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.
^See information about the Mozo Experts Choice Home Loan Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.