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States across Australia are experiencing declines in new home loans and refinancing, according to the digital settlement platform.
According to Property Exchange Australia’s (PEXA) latest Mortgages Insights Report, sale settlements with a new loan declined in the states of NSW, Queensland, Victoria and Western Australia.
Total loans for NSW as of September 2022 were down 7.9 per cent on August 2022, and down 24.9 per cent on the same period in 2021.
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A total of 10,078 new loan settlements were recorded in the month of September in Australia’s most populous state.
Western Australia saw a 6.0 per cent drop on August figures, falling to 5,536 settlements, with a 9.1 per cent drop year-on-year (YoY).
This was followed by Queensland which saw a 5.3 per cent drop month-on-month (MoM) to 11,749 residential new loan settlements, and 21.6 per cent drop YoY.
Meanwhile, Victoria saw a 2.7 per cent MoM decline in settlements in September, down 10.2 per cent YoY to 11,616 new loan settlements.
New residential loans declined across the board, with NSW dropping by 8.4 per cent MoM to just over 9,600 loans over the month. This was down 25.7 per cent YoY.
Queensland also saw residential loans drop over the month, down 5.0 per cent on August, and a 22.2 per cent drop from last year. A total of 11,229 new residential loans were settled in September, according to PEXA.
Victoria saw a decline of 3.3 per cent in new residential loan settlements last month, and a 10.3 per cent drop YoY, with just over 11,000 new residential loans settling.
However, NSW and Victoria saw a rise in new commercial loans month-on-month, growing 5.6 per cent and 9.6 per cent respectively, although there was a decline on a year-on-year basis, with a 4.6 per cent drop for NSW and 7.6 per cent drop for Victoria.
The greater metropolitan areas of the states also saw declines in new loans both on a month-on-month and year-on-year basis.
Greater Sydney saw new loans drop by 12.5 per cent in September 2022, and a 25.4 per cent decline from last year.
The greater Perth, Melbourne and Brisbane areas all saw a month-on-month decline with 3.8 per cent, 3.0 per cent and 2.0 per cent along with year-on-year declines of 6.5 per cent (Perth), 10.7 per cent (Melbourne), and 22.6 per cent (Brisbane).
Refinances slightly fell in September 2022 across all four states, largely due to the impact of public holidays. Victoria saw the largest drop in refinances, with a 5.7 per cent decline, followed by NSW (5.1 per cent), Queensland (4.7 per cent), and Western Australia (2.9 per cent).
Western Australia and Queensland saw higher year-on-year figures for refinancing, with a rise of 16.0 per cent for WA and 10.0 per cent for Queensland. NSW and Victoria both saw declines, with a 7.0 per cent drop for NSW and a 4.4 per cent drop for Victoria.
According to the Australian Bureau of Statistics, the value of owner-occupier refinances set a new record high in August, after $18.8 billion of mortgages were moved across lenders.
In seasonally adjusted terms, the value rose 5.3 per cent in July 2022, and 9.8 per cent higher compared to a year ago.
[RELATED: Refinancing hits new record high: ABS]
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