Are borrowers fleeing one big Aussie bank?
Australians are borrowing more and it’s making them richer.
Aussie households are increasing their debt levels to invest and grow their wealth more than ever before. New data released by the Reserve Bank and the government banking regulator APRA yesterday shows
APRA’s latest monthly banking statistics show that ANZ Bank’s investor loan book is valued at more than $80 billion. That’s DOWN 2.4 per cent, or $2 billion in 12 months.
ANZ is the only big four Aussie bank to see its investor home loan book shrink over the last year. Commonwealth Bank’s investor loan book grew 5.1 per cent, while NAB and Westpac grew their investor books by over 3 per cent.
Does this mean that property investors don’t like ANZ Bank and are moving their loans elsewhere?
ANZ chief executive Shayne Elliott says no. Mr Elliott says the bank is being very cautious about lending to investors. Mr Elliott has even said the bank is happy to give up some market share to ensure they only lend to good borrowers who are low risk.
“We’re a bit more cautious,” said Mr Elliott.
“We are still in the market, we still want to grow … and we want to lend,” said Shayne Elliott, “We just want to be a little bit more cautious than we’ve been in the past.”
This week, S&P Global Ratings reported that mortgage stress is rising and the number of Australian home loans falling into arrears is up 25 per cent in the last 12 months.
You can research and compare property investor home loans here.