With $19.5 billion worth of finance commitments, the value of lending to owner-occupiers has fallen over two consecutive months to August 2016. Meanwhile, investor lending rose for the fourth consecutive month, with finance commitments reaching $11.7 billion in August 2016.

According to the August 2016 housing finance data from the Australian Bureau of Statistics, mortgage borrowing from owner-occupier comprised of $1.8 billion for dwellings construction, $1 billion for purchase of new dwellings, $6.4 billion for refinancing of established dwellings, and $10.2 billion for purchase of established dwellings.

Though refinancing and purchase of established dwellings have trended lower over recent months, CoreLogic head of research Cameron Kusher believes that refinance activity will increase over the coming months.

As for the $11.9 billion in investor mortgage lending, it was split between $0.9 billion in construction lending and $11.1 billion for established housing.

“Although investment demand is lifting, it is not expected to lift to the substantial levels recorded earlier in the current housing cycle,” said Kusher.

“The fading demand from owner-occupiers reflects that many have already upgraded or downgraded in the current cycle.”