Borrowers switched lenders in droves to find a better deal throughout December, according to data released this week by the Australian Bureau of Statistics (ABS).
The figures show that the value of loan refinancing between lenders fell 1.5% but remained high at $19.1 billion in December 2022.
The total value of new loans continued to decline in December (4.3% to $23.4 billion), from record high levels seen earlier in 2022. New owner-occupier lending fell 4.2% to $15.6 billion, while new investor loans fell 4.4% to $7.9 billion.
ABS head of Finance and Wealth Sean Crick noted that despite the apparently dire news, lending is still almost one-quarter higher than it was just prior to the pandemic.
“In December 2022, the value of total new housing loans was 23% higher than the level seen in February 2020, prior to the COVID 19 pandemic”, Crick said.
“In December 2021, the value of these commitments was 74% higher than the pre-pandemic level.”
The number of new loans to first home buyers fell 4.2% in December 2022. First home buyer loans in December were 53% below their January 2021 peak and 20% below the February 2020 pre-pandemic level.
