5601.0 - Lending Indicators, May 2020 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 09/07/2020   
   Page tools: Print Print Page Print all pages in this productPrint All RSS Feed RSS Bookmark and Share Search this Product

MEDIA RELEASE

9 July 2020 Embargoed: 11:30 am (Canberra time)
Home loan commitments fell sharply in May

The value of new loan commitments for housing fell sharply in May, down 11.6 per cent, seasonally adjusted, according to the latest Australian Bureau of Statistics figures released today.

ABS Chief Economist, Bruce Hockman, said: “This was the largest fall in the history of the series, driven by strong falls in the value of loan commitments for housing in New South Wales and Victoria”

The value of new loan commitments for owner occupier housing fell 10.2 per cent, while investor housing fell 15.6 per cent. The number of owner occupier first home buyer loan commitments fell 9.3 per cent.

“While reduced transactions in the housing market stifled new loan activity in May, the value of existing owner occupier loans refinanced with a different bank was by far the highest on record as borrowers responded to reduced interest rates and refinancing offers”, Mr Hockman said.

The value of new loan commitments for fixed term personal finance rose 14.5 per cent in May, seasonally adjusted, following a 24.8 per cent fall in April.

“The rise in the value of new loan commitments for fixed term personal finance was driven by a partial rebound in the value of new loan commitments for road vehicles”, Mr Hockman said.

The ABS appreciates the continued support of APRA and lending institutions in providing the data used to compile this publication and for the additional data insights being provided by lending institutions.

More information is available in Lending Indicators, Australia (cat no. 5601.0).


Media note:

  • When reporting ABS data, you must attribute the Australian Bureau of Statistics (or ABS) as the source
  • For media requests and interviews, please contact the ABS Media Team via media@abs.gov.au (8:30am - 5:00pm Mon-Fri)
  • Subscribe to our email notification service and get media releases or products sent to you on release.