Australians have not been deterred from investing their money in property despite the clampdown in investment lending, the latest APRA statistics reveal.

New investment loans to households surged by 20% in the June 2015 quarter, the regulator’s quarterly property exposures statistics reveal, with almost $41 billion worth of investment loans approved in the quarter.

New loans to owner-occupiers also recorded a jump in approvals, however it was not as significant as those to investors. New owner-occupied loans increased by 16%, with $55 billion loans approved over the June quarter.

The total value of investment loans on the books of Australian lenders was $518.3 billion at the end of the 2015 financial year. This represents 39% of all home loans, compared to 35.5% at the end of the 2014 financial year.

The major banks approved $33.5 billion worth of investment loans over the June 2015 quarter, a 20% increase from the March quarter. The total value of investment loans on the books of the majors at the end of the June 2015 was $437.5 billion, which represents 41% of their total residential loan book.

 

Source Brokernews.com.au