The fact that interest rates are on the rise has made consumers more wary when it comes to making big financial decisions regarding the purchase of a home, blocks of land and for motor vehicles, thus borrowing fell for the month of November.
The latest lending figures have shown that consumers seem to have more faith in the stock market, as lending on shares has risen.
Loans for home renovations have dropped by 13.9 per cent and spending on land has fallen by 12.7 per cent since June last year.
James Mc Intyre economist from the Commonwealth Bank has stated that there were signs of increased borrowing on credit cards, but consumers were still cautious when it came to spending on holidays and new motor vehicles.
The latest figures that were released last week showed a collapse of 6.2 per cent in the number of people seeking a mortgage in November, indicating that there could be further rate rises later this year.