Lending to buyers of Australian properties purely looking to make a return on an investment has outpaced that made to regular homeowners for a third time this year.
Home loans growth for rent and resale rose 3.2 per cent in June, while loans to owner-occupiers rose 1.8 per cent.
In both March and May lending to investment buyers outpaced that made to regular homeowners, the first such occasions since July 2014.
The trend becomes even more marked when revisions for May, published today, are taken into account: investment lending that month rose 5.3 per cent, up from an originally-stated 3.9 per cent. Homeowner lending fell 0.1 per cent, instead of the 0.6 per cent drop originally stated.
The Reserve Bank of Australia has taken interest rates to a record low, cutting twice this year, in a bid to stimulate the economy, but policymakers have previously raised concerns that cheaper credit was stoking a house price bubble.
Overall home loans rose 1.2 per cent in June, short of economists’ expectations of a 2.3 per cent rise. A dip of 1 per cent in May was also scaled back to -0.8 per cent.
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