The value of interest-only loans approved during the September quarter dived 44.8 per cent, and were a record low as a proportion of total new mortgage lending.
According to APRA's September quarter data, the total value of interest-only loans approved during the period was down 44.8 per cent to $16.603 billion, and down 52.8 per cent from the level of a year ago.
APRA's restriction of interest-only lending to 30 per cent of new mortgages is certainly biting.
Source: CoreLogic.
During the September quarter, interest-only mortgages were only 16.9% of new mortgage lending, a record low, and well down from the 30.5 per cent of the June quarter.
Overall, the APRA data shows that banks provided mortgages to the value of $98.211 billion, a 3.3 per cent increase on the previous year. Of the new mortgages, $67.217 billion was for owner occupiers and $30.994 billion was for investors. The value of lending to investors was the lowest since the March 2016 quarter, and is down 9.1 per cent over the quarter and down 6.6 per cent over the year.
Lending to investors is now down 12.9 per cent from its December quarter 2016 peak of $35.572 billion.
Conversely, the value of home loans to owner occupiers rose to its highest quarterly value since December 2015.
Source: CoreLogic.
See the data. Read APRA's Quarterly Authorised Deposit-taking Property Exposures report here.
Read more about APRA's policies and their impact on the Australian housing market:
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