Investors drive home loans to record high

·1-min read

Investors have made their biggest push in the housing market in almost six years, helping lift new home loans in a record month.

Investors borrowed 13.3 per cent more in May than the previous month, and made-up $9.1 billion of the $32.6 billion in new home loans.

Australian Bureau of Statistics head of finance and wealth Katherine Keenan said the investor tally was the most in value since June 2015. This borrowing was concentrated in NSW and Victoria.

By contrast, owner-occupiers increased their commitments by only 1.9 per cent more for May to $23.4 billion.

Canstar group executive, financial service, Steve Mickenbecker said investors' rush to buy would make life harder for first home buyers.

"First home buyers don't have investors' borrowing track record and rightly lack the confidence to sign unconditional contracts," he said.

While first home buyers borrowed 2.5 per cent more in May ($6.85 billion), there were fewer of them.

The number of people buying their first home dropped 0.8 per cent to 15,050.

Low interest rates during the pandemic and government programs such as HomeBuilder have helped property buyers.

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