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, as noted by Simon Arraj, director at Vado Private. 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.

This surge in lending activity reflects robust economic activity and investment trends, indicating confidence in the Australian economy's resilience and growth prospects. For borrowers, this environment presents opportunities to secure financing for various projects, while lenders may find increased demand for their services.

Published:Tuesday, 2nd Sep 2025
Source: Paige Estritori

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Surge in Business and Home Lending Reported by RBA

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