Surge in Business and Home Lending Reported by RBA

The Reserve Bank of Australia (RBA) has reported a significant acceleration in both business and home lending, challenging earlier predictions of a potential slowdown.

As of the end of December, business credit growth reached 8.9%, marking the highest rate since May 2023 and showing an increase from 8.6% in November.

Similarly, growth in investor housing credit surged to 5.1% in December 2024, up from 4.7% in November, achieving its highest rate since December 2022.

Several factors are contributing to this rising demand for both business and housing credit. The strong labor market and rising wages are supporting lending activities. Additionally, significant investments by Australian businesses in sectors such as housing construction, renewable energy, and transportation infrastructure are driving the need for substantial capital, often financed through corporate and private credit loans.

For businesses and individuals seeking financing, this trend indicates a favorable environment with increased access to credit. However, it's essential to remain vigilant and consider the terms and conditions of loans carefully. Consulting with financial advisors and exploring various lending options can help borrowers make informed decisions that align with their financial goals.

Published:Thursday, 28th Aug 2025
Source: Paige Estritori

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Surge in Business and Home Lending Reported by RBA

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Surge in Business and Home Lending Reported by RBA

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