Loans to the private sector grew at a slightly higher rate in September. Loans to business were the main drivers of the higher-than-expected figures, with total credit rising 0.8% for the month compared to the 0.6% recorded in August. Total credit grew by 6.7% in the year to September.
Business loans, which accounted for 33% of all loan growth in the month, grew by 1.2%, while housing loans which account for just over 60% of monthly loan growth, grew by 0.6%. The balance which comprises personal loans, grew by 0.1%.
In the housing component, “owner-occupier” housing grew at 0.7%, up from August’s 0.6% while investor loans growth grew by 0.5%, down from August’s 0.6%.
Westpac said the tightening of investor lending conditions is driving a clear shift in housing lending away from investors to owner occupiers.
