Home buyers rushed to the banks in July, pushing new loans 11.8% higher than the same time last year. New mortgage commitments, not counting refinancing of existing loans, jumped 10.7% from June to July alone, which is $14.3 billion worth of lending. This is the biggest month-on-month increase in new lending since the GFC.

The rise in demand for home loans is reflected in the number of first home buyers; loans to this group jumped 10.6% in a month, and 27% from the same time last year. The First home buyer stimulus packages are clearly working.

According to the Head of Finance and Wealth at the ABS, the largest increases were in New South Wales, Victoria, and Queensland. In fact, new loan commitments for owner-occupier housing rose in all states and territories, except the ACT.

Loans to new investors also rose, albeit more modestly at 3.5% month-on-month. This indicates that the current market demand is being driven by owner-occupiers and not so much investors.