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30.08.2017 Brokers grow total ADI loan approvals by 5%

Brokers grow total ADI loan approvals by 5%

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by Miklos Bolza30 Aug 2017

The number of third party loans across all large authorised deposit-taking institutions (ADIs) is on the increase, according to the latest banking figures from the Australian Prudential Regulation Authority (APRA).

In the 12 months prior to 30 June 2017, $49.8bn worth of residential loans were brought in through the third party channel for ADIs with more than $1bn in residential loans. This was an increase of 5.1% from the $47.4bn brought into these larger lenders the year before.

These figures come from APRA’s report, Quarterly Authorised Deposit-taking Property Exposures, released yesterday (29 August) which also showed that brokers brought in $37.0bn worth of loans through the major banks (an increase of 2.9%) and $9.6bn through the non-major domestic banks (an increase of 18.1%).

Regarding the total national banking portfolio, the value of residential loans held by all 142 ADIs increased by $105.2bn (or 7.3%) to $1.54trn in the year recorded.

This included $1,006bn of owner occupier lending and $536bn of investment lending which experienced an annual increase of 8.1% and 5.8% respectively. Only 38.2% of these loans were interest-only.

The 32 ADIs with greater than $1bn in residential loans held 98.7% of all residential mortgages, equalling 5.8 million loans with a total value of $1.52trn.

These larger lenders approved just over 5,800 loans throughout the year, putting the average loan size at around $262,000. This was slightly higher than the $252,000 recorded at the end of June last year.

In the 2016/17 financial year, the 32 ADIs with greater than $1bn in residential lending approved $384bn in new loans – an increase of $12bn (or 3.2%) from the year before. Of these:
  • $249.9bn were owner occupied (a decrease of 0.5%)
  • $134.1bn were investment (an increase of 10.9%)
  • $54.7bn had LVRs between 80% and 90% (an increase of 5.1%)
  • $29.7bn had LVRs greater than 90% (a decrease of 10.4%)
  • $135.5bn were interest-only (a decrease of 2.5%)
Looking at the different types of ADIs, APRA’s June figures gave a good breakdown of the proportion of the loan book for major banks and local domestic banks as follows:
Major banksOther domestic banks
Major banksOther domestic banks
ApprovalsAnnual % changeApprovalsAnnual % change
OO$47.5bn-1.5%$12.7bn+11.6%
Investor$28.3bn+0.5%$4.6bn+2.6%
I/O$23.9bn-19.1%$4.7bn-8.5%