The proportion of debtors choosing a set fee hit a brand new document low of simply 1.40 per cent in March, in line with ABS statistics launched in the present day.
The latest ABS lending indicators, launched in the present day, present simply $664 million value of loans opted for a set fee, out of the $47.5 billion value of latest and refinanced loans authorized within the month of March.
February was the earlier document low of simply 1.44 per cent.
The peak within the recognition of fixing in Australia was again in July 2022 when 46 per cent of all new and refinanced loans opted for a set fee.
Proportion of latest loans choosing a set vs variable fee, final 3 years
Source: ABS Lending Indicators, authentic knowledge. Based on the worth of latest and refinanced loans funded within the month.
Refinancing drops to lowest degree in over two years
The worth of refinanced loans dropped by 2.5 per cent this month, right down to $16.02 billion – the bottom degree since January 2022.
The drop comes following a mass exodus from the cashback market, with Westpac subsidiaries St George, BankSA and RAMS asserting in the present day they may also be wrapping up their cashback incentives.
Value of loans refinanced in March
| Amount | Monthly change | Year-on-year change | Total refinanced since begin of hikes |
| $16.02 billion
lowest since Jan 22 |
-$414 million | -$5.31 billion | $427.45 billion |
| -2.5% | -24.9% |
Source: ABS lending indicators, seasonally adjusted knowledge.
New lending roars forward, fuelled by greater costs
The worth of latest mortgages continued to choose up tempo in March, led by buyers which noticed a 3.8 per cent enhance from the earlier month, in seasonally adjusted phrases.
Compared to the identical time a 12 months in the past, investor lending has risen by an astounding 31.1 per cent, whereas owner-occupier lending has risen by 11.4 per cent.
The sharp rise in new lending is prone to be primarily fuelled by rising property costs, with the ABS noting that the variety of new loans authorized was ‘broadly similar’ to the outcomes from final March, in authentic phrases (seasonally adjusted knowledge not available).
Value of latest mortgages: March
| Amount | Monthly change | Year-on-year change | |
| Total | $27.64 billion | +$839 million +3.1% |
+$4.20 billion +17.9% |
| Owner-occupier | $17.48 billion | +$470 million +2.8% |
+$1.79 billion +11.4% |
| Investor | $10.17 billion | +$369 million +3.8% |
+$2.41 billion +31.1% |
Source: ABS lending indicators, March 2024, launched 3 May 2024, seasonally adjusted knowledge.
First home consumers
| Amount in March | Monthly change | Year-on-year change | |
| Number of latest loans | 9,918 | +427 +4.5% |
+897 +9.9% |
| Value of latest loans | $5.19 billion | +$218 million +4.4% |
+$789 million +17.9% |
Source: ABS lending indicators, March 2024, launched 3 May 2024, seasonally adjusted knowledge.
Average mortgage sizes
Average new owner-occupier mortgage sizes largely elevated throughout the nation this month, with notable good points within the Northern Territory, South Australia and Western Australia from the earlier month.
Since the beginning of the speed hikes, the common mortgage sizes have risen in 5 states and territories, with the largest will increase recorded in South Australia (+11.1%), Western Australia (+10.7%) and Queensland (+8.4%), regardless of the 13 RBA fee hikes.
Only New South Wales, Victoria and the ACT have seen the common new owner-occupier mortgage sizes drop for the reason that begin of the hikes.
Average new mortgage sizes – owner-occupier mortgages
| Amount | Monthly change | Since begin of fee hikes | |
| Australia | $607,963 | +$9,339 | -$3,191 |
| +1.6% | -0.5% | ||
| NSW | $744,101 | +$22,502 | -$41,934 |
| +3.1% | -5.3% | ||
| VIC | $590,475 | -$12,667 | -$46,793 |
| -2.1% | -7.3% | ||
| QLD | $571,954 | +$10,329 | +$44,502 |
| +1.8% | +8.4% | ||
| SA | $519,165 | +$18,231 | +$51,880 |
| +3.6% | +11.1% | ||
| WA | $521,863 | +$15,859 | +$50,374 |
| +3.1% | +10.7% | ||
| TAS | $461,961 | +$24,882 | +$14,183 |
| +5.7% | +3.2% | ||
| NT | $461,538 | +$32,042 | +$35,026 |
| +7.5% | +8.2% | ||
| ACT | $579,259 | -$49,152 | -$17,062 |
| -7.8% | -2.9% |
Source: ABS lending indicators, authentic knowledge. Owner-occupier loans solely, excludes refinancing.
RateMetropolis.com.au analysis director, Sally Tindall, stated: “Fixed rates continue to sink to new lows as borrowers wait with bated breath to get a clearer idea of what the RBA’s next move will be.”
“The refinancing storm is well and truly over, with the value of loans switching to a different lender in March dropping to just $16.02 billion,” she stated.
“While in dollar terms there is still an impressive amount of loans jumping ship, it’s the lowest level since well before the start of the rate hikes and yet another sign the refinancing market is settling into a much cooler new norm.
“The value of new loans approved in March has risen sharply since the same time a year ago, as buyers battle it out to place the winning bid on a limited amount of stock.
“Investor lending, in particular, has risen by a massive 31 per cent compared to the same time a year ago, despite the fact we’ve had three more RBA hikes within this time.
‘It’s amazing to see what the lure of potential capital gains can have on the market,” she stated.
Eden Radford
External Comms Lead
Eden Radford is the External Comms Lead for RateMetropolis, bringing almost a decade of expertise throughout the finance companies and know-how sectors. In prior years, Eden has labored with Lendi, Aussie, Xero, Qualcomm, Accenture, and Dyson, amongst others, whereas being a pillar of experience for presidency purchasers and contracts, as effectively. Eden has a ardour for bettering monetary literacy, knowledge storytelling and serving to individuals higher perceive the choices they’ll make about their very own funds.
Eden Radford is the External Comms Lead for RateMetropolis, bringing almost a decade of expertise throughout the finance companies and know-how sectors. In prior years, Eden has labored with Lendi, Aussie, Xero, Qualcomm, Accenture, and Dyson, amongst others, whereas being a pillar of experience for presidency purchasers and contracts, as effectively. Eden has a ardour for bettering monetary literacy, knowledge storytelling and serving to individuals higher perceive the choices they’ll make about their very own funds.
