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Demand for housing finance continues to grow, according to fresh figures from the Australian Bureau of Statistics (ABS).
The data revealed that a total of 55,985 home loans were approved in September – up 2.0 per cent on the previous month.
However, the total value of dwelling commitments was down by 1.6 per cent, with $33.37 billion worth of home loans written throughout the month.
Mortgage Choice CEO John Flavell said the drop in the overall value of dwelling commitments could be largely attributed to a significant fall in the value of investment loans during September.
Finance of investment housing totalled $12.32 million for the month – down 8.5 per cent from August.
Meanwhile, finance for owner-occupied housing in September was worth $21.05 million – up 3.0 per cent on the month prior.
Mr Flavell said the data suggests the beginning of a downwards trend in investment lending.
“Over the coming months, I wouldn’t be surprised to see the total value of investment lending activity continue to drop as the changes being made by Australia’s lenders continue to be felt by Australian borrowers and potential investors,” he said.
[Related: Fixed-rate demand continues to decline]
