Investors Borrowing More

Investor lending has hit a new peak, with more than 205,000 new investor loans issued in the past 12 months.

Analysis by Money.com.au shows a 9% year on year increase in investor loans, with Victoria leading the charge with a 12.9% increase over the year.

Investor loans were also up by 10.5% in New South Wales, 10% in South Australia and 8% in Queensland.

Investors are seeking out existing properties with the data showing that nationally investor loans for established dwellings are up by 13.2%, compared with 2.7% for owner-occupiers.

The average investor loan size has also increased in every state. Nationally, the average investor loan is $677,000. It is much higher in New South Wales at $845,000, while the lowest is $422,000 in the Northern Territory.

Money.com.au property expert Debbie Hays says at the same time owner-occupier lending has been more muted. The Northern Territory (14%) and Tasmania (11%) had the biggest increase in owner-occupier loans.