Source: PEXA
Key Findings: FY24
- A total of 509,955 new loans were issued in FY24, an increase of 6.0% compared to FY23.
- New loan volumes were highest in VIC in FY24 (136,461), despite more property transactions being settled in QLD and NSW in FY24 (see PEXA Property Insights FY24).
- 396,653 refinances were completed in FY24, a 11.9% decline compared to FY23.
The month of June 2024 is typically one of the strongest months for property settlements in any given year. New loan volumes in June 2024 were weaker compared to May but was flat compared to June 2023, despite fewer business days in June 2024.
The Australian economy slowed markedly through FY24. Real GDP grew by only 0.1% q/q and 1.1% y/y in the March quarter of 2024, weighed down by falling real GDP and incomes per capita (-1.3% y/y and -2.8% y/y respectively).
FY24 saw interest rates rise rapidly, even as average household incomes stagnated (and went backwards, in real terms).
Despite this, most borrowers are still able to service their mortgages. Mortgage arrears rates have ticked up slightly but remain low nationally, and low levels of distressed sales are evident.
New loan volumes growth has therefore been subdued, as home buyers are constrained by higher loan serviceability costs – and in some cases, by a reduced maximum loan size.
