Value of Aussie mortgage market hits $1.4 trillion

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The value of the Australian mortgage market hit $1.4 trillion in 2015 after a surge in new owner-occupied home loans drove an 8.5% increase in the total loan book over the year. 

Almost $100 billion worth of new owner-occupied home loans were written over 2015, according to APRA’s monthly banking statistics, a yearly increase of 12.4%. By comparison, due to the regulator crackdown on investment lending in 2015, just shy of $12 billion investment loans were settled, an increase of 2.4% over the year. 

The four major banks were behind 80% of new owner-occupied home loans written in the 2015 calendar year, settling just over $79 billion in these types of loans. 

Westpac recorded the largest growth in owner-occupied home loans over the year out the major banks, growing its owner-occupied loan book balance by 21% to $217 billion. However, the Commonwealth Bank of Australia (CBA) owns the biggest slice of the owner-occupied market with its owner-occupied loan book totalling $248.8 billion. CBA wrote a value of $17.6 billion worth of owner-occupied loans in 2015, an increase of 8% over the year. 

Australia and New Zealand Banking Group (ANZ) wrote $17.4 billion worth of owner-occupied home loans in 2015, increasing its book by 14%. ANZ’s total owner-occupied book is now worth $144.2 billion.

National Australia Bank (NAB) increased its owner-occupied loan book by 5.1%, settling $6.3 worth of owner-occupied loans over the year. It has the smallest owner-occupied loan book of the four majors, totalling $129.3 billion.