by Daniel Dunkley
The market held steady last month with total home loans reaching $8.5 billion, down from the $8.9 billion recorded in May, but up from the $8.4 billion recorded in April.
Latest statistics from the Reserve Bank underline the resilience of the home lending market as prices continue to soar.
The $8.5 billion lent last month dwarfs the $5.3 billion borrowed in June 2020.
Yet it marks a decline on the peak of the market, in March, before the Government announced its reforms to cool activity. More than $10.4 billion was lent in March.
First home buyer lending in June outstripped investor activity for the first time in several months.
First time buyers borrowed $1.64 billion, while investors were lent $1.4 billion last month.
Other owner-occupiers borrowed $5.3 billion, down from $5.5 billion the month before.
The data offer more evidence of the market's resilience in the wake of the Government's housing market reforms, such as the extended bright-line test and phased removal of interest deductibility.
However, a breakdown of LVR ratios reveals new speed limits to curb investor lending are having an impact.
According to the Reserve Bank, the share of new mortgage commitments with high LVR to investors was down from 32.1% in May to 28.2% in June, the seventh consecutive month of declines.
Higher LVR lending to investors has fallen dramatically in recent months.
Just $132 million was lent to investors above 70% LVR last month, down from $844 million in November, before speed limits were reintroduced.
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