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Thursday 3 December 2020

Housing finance solid again in October on HomeBuilder

Lending firms thanks to construction

Borrower-accepted loan commitments drove 0.7 per cent higher to a fresh record of $22.68 billion in October 2020.

The strong result partly reflects a surge in construction loans, again driven by the HomeBuilder stimulus. 

Overall, investor lending remained modest, though it is now increasing. 

The strong result came despite a drop in homebuyer activity in Victoria, with strength in lending across the other mainland states. 

There was also a drop in first homebuyer numbers in Victoria, but this didn't prevent the highest result since 2009 as New South Wales and Western Australia ploughed on. 

Overall, a solid result almost across the board, especially for construction lending, and Victoria will likely rebound once the disruption from the shutdown washes through.