RBA: Home loan credit up in March

The amount of credit approved for Australians looking for home loans increased by 0.6 per cent in March, the Reserve Bank of Australia (RBA) has announced.

According to the Bank, the lion’s share of home loan credit was handed out to existing property owners who were in search of a better deal.

The value of home loans given to first-home buyers also increased, as did the amount of credit given to landlords and investors, albeit by a smaller margin.

However, in a sign that banks are tightening their belts and Aussies are putting down their credit cards, the RBA reported that credit for credit cards and personal loans fell by 0.3 per cent over the month.

Businesses may have also found it harder to get themselves a loan as total commercial credit also fell.

Speculation is growing as to whether the RBA will make another interest rate cut when it meets again for its monthly look at the cash rate on May 5th.

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