Business credit grew by 4.3 percent year-on-year following a better 0.7 percent result for the month.
As the below chart shows, business credit growth, while historically speaking only modest, is now tracking in the right direction again and at its best annual rate of growth since the month of June 2012 at 4.3 percent.
As a result the total share of investor credit is now at the highest level in Australia's history at 34.1 percent.
Witness for example the dearth of investor in activity in Adelaide which has increased dwelling values by only 2.8 percent of the past year (recording a 0.3 percent fall over the past quarter) as compared to the investor frenzy in Sydney which has pushed a great many inner suburban prices up at a 15-20 percent pace.
Why? Simply because the modern variable rate interest only mortgage is a superior product for the responsible borrower, due to its flexibility and the option to make repayments to the principal but on the borrower's own terms.
Can homeowners in aggregate be trusted to use interest only home loans sensibly?