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Investors, home buyers borrowing less, data shows

The housing market continues to simmer, but may have come slightly off the boil.

New home, construction site. Source: istock.com

Reserve Bank data released this afternoon showed both investors and home buyers borrowed less in June than in previous months.

People are still clamouring to borrow, with $8.5 billion borrowed for mortgages last month alone, a new high for the month of June.

That’s slipped from a peak of $10.5 billion in March.

First home buyers still want in on the market, with lending to that group reaching $1.65 billion in June, a drop from $1.75 billion the month before.

In a sign investors may be stepping back, there’s been a noticeable shift in lending to them, particularly when it comes to high risk lending.

In March. $2.3 billion dollars was lent to investors, but by last month it had fallen to $1.4 billion.

The Loan to Value Restrictions reinstated by the Reserve Bank in an effort to slow down investors also appear to be working, with a noticeable decline in the amount of high risk, LVR lending. That’s dropped for the 7th consecutive month.

Over $50 billion has been handed out in mortgage lending in the first six months of this year alone.