Demand for credit hits record low

Fewer housing transactions, bigger deposits from home buyers and people intent on paying off their loans more quickly have affected lending.

The Reserve Bank's credit data shows housing credit rose just 0.4 per cent in July, running at an annual rate of 5.9 per cent, a record low.

Home-building approvals fell 15 per cent in the year to the end of July and that new-home sales dropped to a 10-year low.

Consumers are wary of taking on more debt and would-be home buyers are holding out for interest rate cuts.

Source: The Age