Housing Finance in Australia January 2013


Figures releases by the Australian Bureau of Statistics (ABS) show that loans for House purchases in January 2013,was at its lowest level since January 2012. Maybe January is a quiet month every year ?

January 2013 Housing Finance

Total Housing Finance in January 2013 was $11,923,055,000, compared to $11,584,470,000 in January 2012. A small rise when compared to the same month.

Banks financed the majority of all in Housing Loans in January 2013

$11,113,616,000 Banks
$–,144,755,000 Building Societies
$–,252,371,000 Wholesale Lenders
$–,412,313,000 Other Lenders

Annual Housing Finance

Totals loans for the three previous years (all lenders) were:

2010 $156,052,913,000
2011 $158,439,243,000 an increase of 1.53% from 2010
2012 $163,457,040,000 an increase of 3.17% from 2011

The above figures are taken from Table 2, Report 5671.0 Lending Finance, ABS.

AFG, Australia’s Largest Mortgage Broker

The volume of mortgages arranged by AFG in 2012 increased by 15% from 2011 according to AFG, Australia’s largest mortgage broker.

AFG’s Mortgage Index, published 15th January 2013, shows that the total volume of mortgages arranged by the aggregator was $32 billion, compared to $28 billion the year before. AFG has approximately 10% the total national mortgage market (Source: ABS and AFG data). AFG’s 15% increase may be in part due to improved market share as well as overall market growth.

Question:

ABS figures are $163 billion, Housing Finance – Total for 2012
AFG figures are $32 billion  This is 20% of the ABS figure.

AFG state that they hold approximately 10% the total national mortgage market (Source: ABS and AFG data).

Why the difference: 20% or 10% ?

Are the figures they use different to the ones I used ?  Do they include Business Loans ? and maybe Non Housing Finance ?

The answer:  Yes, it would appear is the answer.

The ABS figures are for “Housing finance for owner occupation, excluding alterations and additions”.
AFG figures appear to be for total mortgages.

The RBA is another source of Housing Finance with their finance reports:

  • “Household Finances – Selected Ratios – B21” report.
  • “Lending Commitments – All Lenders D6” Report

Using the D6 report we get these figures for the 2012 year.

$163,260,000,000 for Owner-occupied housing
$ 84,064,000,000 for Investment properties
$ 88,633,000,000 for Personal Loans
$335,957,000,000 TOTAL

AFG’s 10% is about right for those three combined.

That report also shows the commercial loans which are NOT included above.

$366,379,000,000 for Commercial Loans


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