The value of new home loans has fallen for the second consecutive month, according to the latest ABS credit indicators.

In September, a seasonally adjusted total of 30.31 billion US dollars in new mortgages were processed, 1.4 percent less than in August.

Owner-user lending fell $ 575 million in a month, 2.7 percent less than in August.

However, lending to investors continued to rise, reaching $ 9.62 billion.

Value of new home loans approved in September

Source: ABS Lending Indicators September 2021, published November 1, 2021, seasonally adjusted data. Annual change is from September 2020 to September 2021.

Sally Tindall, Research Director at RateCity.com.au, said, “It’s become a numbers game in the real estate world and investors are booming.”

“For the fourth straight month, home loan values ​​have declined while investor mortgages have risen to levels not seen in more than six years,” she said.

First-time home buyers continue to fall short

For the eighth month in a row, the number of first home buyer loans for owner-occupiers nationwide fell by 5.6 percent within one month and by 27.1 percent since the peak in January.

Victoria led the withdrawal, with home buyer initial loans dropping 16.7 percent in just one month, while NSW fell 3.1 percent.

First time home buyers in September

Source: ABS Lending Indicators September 2021, published November 1, 2021, seasonally adjusted data.

Sally Tindall said, “With house prices now painfully inaccessible for many first-time buyers, particularly in Sydney and Melbourne, the feeling of hopelessness is growing for those who are not yet in the market.”

“It has come to a point where the great Australian dream of owning a home turns into a nightmare for many people when first-time home buyers don’t get significant help from their parents,” she said.

External refinancing drops record high after 5 months

A total of $ 16.16 billion in mortgage refinancing was in September, 9.1 percent less than the previous month’s record high.

However, that’s still $ 3.20 billion more than at the same point in time last year and $ 6.32 billion more than two years earlier.

Value of externally refinanced loans in September

Source: ABS Lending Indicators September 2021, published November 1, 2021, seasonally adjusted data. The annual change is from September 2020 to September 2021 and the 2-year change is from September 2019 to September 2021.

Sally Tindall said: “The Australians have funded massively this year, but the momentum has slowed as fixed interest rates have risen.

“In the past two years, over $ 300 billion in home loans have been refinanced, many of which have been locked in, so it’s no surprise that number is falling.

“With many of these mortgages locked for several years now, it is likely that refinancing volumes will continue to decline in the coming months,” she said.