New housing loan commitments rose 4.8% in May

Media Release

The value of new loan commitments for housing rose 4.8 per cent to $24.9 billion in May 2023, after a fall of 1.0 per cent in the previous month, according to data released today by the Australian Bureau of Statistics (ABS).

Mish Tan, ABS head of finance statistics, said: “The value of new owner-occupier loan commitments rose 4.0 per cent to $16.4 billion in May, while the value of new investor loan commitments rose 6.2 per cent to $8.5 billion.”

The value of new owner-occupier dwelling loan commitments (excluding land and alterations, additions and repairs) rose 4.2 per cent to $15.3 billion. Meanwhile, the number of these commitments rose 5.1 per cent to 26,253.

Compared to pre-COVID 19 pandemic levels in February 2020, the value of new owner-occupier dwelling loan commitments was 17.0 per cent higher in May 2023, while the number of commitments was 0.2 per cent lower. The average value of these loans has risen by 21.8 per cent (in original terms) over this period.

The number of new owner-occupier first home buyer loan commitments rose 2.7 per cent, after a fall of 0.3 per cent in April. This was 17.4 per cent lower compared to a year ago.

The value of new owner-occupier housing loan refinances between lenders rose 8.6 per cent and reached a new high of $14.1 billion. Borrowers continued to switch lenders amid an environment of increasing interest rates.

Housing finance loan commitments by property purpose and state, seasonally adjusted – May 2023
 Value ($b) :
 Value change ($m):634473228618722351
 Value % change ** :
Owner-occupier first home buyers
 Number change:22217414941-17201025
 Number % change ** : †
 Value change ($m):4972551747072-66844
 Value % change ** : †33.3 †

* Total Australia levels do not necessarily equal the sum of states, due to independent seasonal adjustment

** All movements are on a month-to-month basis

† A smaller and more volatile series

Personal finance

The value of total new loan commitments for fixed term personal finance rose 4.3 per cent. Lending for the purchase of road vehicles rose 9.3 per cent.

More information is available in Lending Indicators, Australia.

Media notes

  • All figures are seasonally adjusted unless noted otherwise.
  • Lending Indicators reverted to concurrent seasonal adjustment in the Oct22 release. This method of seasonal adjustment will result in revisions to historical data each month. For more information, see the methodology page.
  • When reporting ABS data, you must attribute the Australian Bureau of Statistics (or the ABS) as the source.
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