by Sanjeev Sah | Jun 25, 2024 | Market Updates

Recent Australian Bureau of Statistics (ABS) data shows a 5.6% increase in new home loan commitments to investors in April compared to March, marking a 36.1% rise over the past year. 

As the graph below shows, this is the biggest monthly increase since the Reserve Bank of Australia started raising interest rates in May 2022 and comes amid a favourable investment environment characterised by rising property prices and soaring rents. 

ABS spokesperson Dr Mish Tan said that investor lending has grown notably compared to owner-occupiers, driven by larger loan amounts. 

Specifically, in April, the average investor loan for an existing dwelling increased 9.5%, from $592,000 in April 2023 to $648,000. 

 Meanwhile, the average loan size for owner-occupier first home buyers rose by 6.8%, from $498,000 to $532,000 over the same period. 

“This likely reflects expectations of higher rental yields and the greater borrowing capacity of investors,” Dr Tan said.