Lending dropped across the board in November as banks held the purse strings tight, with home loans to owner occupiers and the value of personal loans each dropping by more than one per cent.

Commercial loans – including mortgages to investors – also fell, dropping by a seasonally adjusted 0.2 per cent to $43.59 billion to continue October’s slide, according to data from the Australian Bureau of Statistics on Monday.

The value of home loans to owner-occupiers dropped by 1.4 per cent in November to $19.8 billion, offsetting a 3.5 per cent rise from the month before, while personal loans fell 1.7 per cent to $5.61 billion for the month.

Lease finance fell 2.0 per cent to $595 million.

The drop in owner-occupier loans comes follows a 0.9 per cent decline in home loan approvals in November, which was actually better than the market expected amid a housing market downturn.