Lending Indicators Show Growth in New Borrower-Accepted Finance Commitments

The latest release on lending indicators for August 2023 reveals significant movements in new borrower-accepted finance commitments across housing, personal, and business loans in Australia.

Housing Finance Highlights:

  • New loan commitments for housing rose by 2.2% in August 2023, reaching $24.82 billion.
  • Owner-occupier housing increased by 2.6% to $16.07 billion, while investor housing rose by 1.6% to $8.75 billion.
  • The construction of dwellings saw a 1.4% rise, but the purchase of newly erected dwellings fell by 1.0%.
  • The total housing commitments were 9.4% lower compared to the previous year.

External Refinancing:

  • External refinancing for total housing fell by 3.9% to $20.6 billion, but it was 12.4% higher compared to a year ago.
  • Refinancing for owner-occupier housing fell by 3.3% to $14.0 billion, showing a 12.4% increase from the previous year.
  • Investor housing refinancing fell by 5.0% to $6.6 billion, with a 12.3% increase from a year ago.

Personal Finance:

  • Total fixed-term personal finance rose by 6.1% in August 2023, with increases in road vehicles (5.9%) and personal investment (8.2%).

Business Finance:

  • Construction finance rose by 17.2%, recovering from a fall of 21.8% in July.
  • Purchase of property for business increased by 10.8%, rebounding from a 1.2% decline in July.

The lending indicators reflect a dynamic economic landscape, with housing finance showing mixed trends and business finance demonstrating resilience. These movements are crucial in understanding the financial dynamics and economic health of the country.

https://www.abs.gov.au/statistics/economy/finance/lending-indicators/aug-2023


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