Over $49bn worth of new residential home loans were approved through the third party channel at authorised deposit-taking institutions (ADIs), according to newly-updated statistics from the Australian Prudential Regulation Authority (APRA
In its Quarterly Authorised Deposit-taking Property Exposures report released on Tuesday (28 February), the regulator examined residential property exposures across the major and non-major banks.
The ADIs held $1.49trn worth of residential loans as of 31 December 2016, an increase of $110bn from the same date the year before.
In total, $101bn of new residential home loans were approved at ADIs throughout the quarter, meaning that the third party channel consisted of around 48.8% of new, successful loan applications.
For the major banks, the third party channel brought in $36bn of new residential loans out of a total of $77bn residential loans approved – meaning the third party brought in 47.3% of new loans.
The third party had a higher market share with the non-major domestic banks, bringing in $9bn worth or 52.5% of new residential loans out of a total of $17bn.
Across all ADIs, 64.8% of all new, approved residential loans were owner-occupied ($65bn) while 35.2% were for investors ($36bn).
These percentages were skewed for the major banks with investors making up a higher percentage of 38.4% of all new residential loans approved during the quarter. Owner-occupier share was lower at 61.6%.
In comparison, the non-major domestic banks were less favoured by investors with only 29% of all new residential loans approved for investment purposes. In fact, 73% of all residential loans approved by non-majors during the December quarter were for owner-occupiers.
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