Owner-occupier home loan approvals have posted the strongest jump in four years.
Personal and business financing are also showing signs of growth, following a series of interest rate cuts.
But home loan approvals are experiencing the strongest revival, rising by 5.8 per cent in March to cap off a 9.3 per cent increase since the start of 2013.
Commonwealth Securities economist Savanth Sebastian says it is the strongest quarterly rise in mortgages, at the start of a calendar year, since early 2009, after some first-home buyer grants were tripled.
“The low-rate environment is starting to foster a bit of activity,” he said.
“It could be the first signs of a revival in lending but it’s still early days.”
Still, the latest surge in loans may not stop the Reserve Bank from cutting interest rates further, from the current record low of 2.75 per cent.
“Rates at these sorts of levels haven’t, in the last few months, fostered significant revival in activity,” Mr Sebastian said.
“If anything, it’s only been incremental improvements.”
The Australian Bureau of Statistics lending finance data, released on Tuesday, show housing finance growing at an annual pace of 12 per cent, the strongest in four years.
During March, personal finance loans rose by 0.6 per cent, while commercial lending ticked up by 1.5 per cent.
Lease financing, however, fell 4.1 per cent.
Banks are expected to work harder to win personal and business loan customers, as consumers choose to pay down more debt, Mr Sebastian said.