In May 2019, the value of new lending commitments to households fell 1.3% according to the latest Australian Bureau of Statistics (ABS) figures on new lending to households and businesses. The fall in new lending to households in May follows a 0.6% rise in April 2019.
Most areas of new lending to households fell in May, led by weaker lending for owner occupier dwellings, down 2.7%, and for investment dwellings, down 1.7%. With lending for owner occupier dwellings weaker in most states and territories, New South Wales drove the fall at 3.5%.
There was a small rise in the number of loans to owner-occupier first home buyers in May at 0.8% compared to a 1.0% fall in the number of loans to owner-occupier non-first home buyers. Trend lending to first home buyers rose for the second consecutive month, up 0.3% in May.
Personal finance fell 0.7% following a 4.2% rise in April. In trend terms, the value of new lending commitments to businesses rose 3.6% in May and is up 13.7% since May 2018.