The latest data from APRA provides an insight into the relative movements between players in the home loan market as well as the total book held by ADIs. The RBA today released their aggregate data to May. APRA data shows that total home loans by ADI’s grew by 0.9% in the month, from $1.45 trillion in April to $1.46 in May, up $13 billion. Of this $10.2 billion was for owner occupied loans and $2.8 billion for investment lending, which has gained momentum recently. Total owner occupied loans were worth $938 billion, and investment loans $524 billion, or 35.9% of book.
Looking at the monthly movements in absolute dollar terms, CBA grew its book the most, with a hike in both owner occupied and investment lending. Westpac grew its owner occupied book more, compared with its investment loans book, though it still has the largest share.
Overall the relative shares changed but slightly.
Finally, we cross-checked the speed limits for investment loans at 10% (not a squeak from APRA as to whether this limit still applies by the way). The majors are all well below, which gives them capacity to make more investor loans in coming months. This is based on a 3 month rolling average, annualised. It will still be noisy, as more than $1bn of loans were switched between categories in the month.
