The Reserve Bank of Australia candidly noted on Friday that housing investors had switched $A61 billion to owner-occupied status after it introduced an interest rate differential between the 2 categories in 2015.
In its financial aggregates for November, the bank said: “Following the introduction of an interest rate differential between housing loans to investors & owner-occupiers in mid-2015, a number of borrowers have changed the purpose of their existing loan.
“The net value of switching of loan purpose from investor to owner-occupier is estimated to have been $A61 billion over the period of July 2015-November 2017, of which $A1.2 billion occurred in November 2017.
“These changes are reflected in the level of owner-occupier & investor credit outstanding. However, growth rates for these series have been adjusted to remove the effect of loan purpose changes.”
Attribution: Bank release.