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Mortgage borrowing increases 5.6% month-on-month

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Mortgage borrowing increases 5.6% month-on-month

Home loan borrowing activity is increasing among both owner-occupiers and investors.

Owner-occupiers committed to $17.23 billion of mortgages in October, according to the latest data from the Australian Bureau of Statistics. That was 5.6% higher than the month before and 1.4% higher than the year before.

Investors committed to $9.52 billion of home loans, which was up 5.0% on the previous month and 12.1% on the previous year. 

Collectively, Australians signed up for $26.75 billion of mortgages, which was 5.4% more than the previous month and 4.9% more than the previous year.

Meanwhile, borrowers refinanced $17.35 billion of existing home loans with new lenders. That was high by historical standards, but was 7.0% lower than the month before and 5.0% lower than the year before, as refinancing has declined from the record levels experienced between March and July.

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