Recent statistics have shown for the first time in 2018, mortgage lending has grown as loans for new investment purchases picked up with the natural increase in activity during the spring market.
The increase in investor loans was just less than 0.6 per cent with total housing finance rising by 2.6 percent. Continual reporting has shown stringent lending policies by banks and finance companies driving the current housing market slowdown pushing Auction clearance rates into the 40 per cent range as buyers struggle to gain approval for loans.
This tougher credit environment has made it more difficult for existing home owners and established investors to re finance with investors and developers increasingly having to rely on more expensive and risky second tier lenders.
It appears the recent slight increase in housing finance has been the result of the continual pipeline of new developments which were started and approved when the market was at its peak in previous years.