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[BUSINESS] · Australia · 5 sources

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Australia investor home loans fall as market retreats

Data from the Australian Bureau of Statistics shows a significant decline in investor home loans during the June quarter. Overall investor loans fell by 8.6 per cent, marking the largest quarterly drop since September 2022. Since the beginning of the year, investor home loans have decreased by 12.9 per cent.

The decline is primarily driven by a 14.8 per cent drop in loans for existing properties. This trend follows federal government announcements regarding changes to negative gearing and capital gains tax, which are set to begin in July 2027. Notably, these tax changes exclude investors borrowing for new builds.

In contrast to the slump in existing home purchases, loans for new property construction rose by 4.4 per cent, reaching an all-time high since 2019. Other contributing factors to the lending slowdown include the Reserve Bank increasing the cash rate for the third time in 2026. Regionally, New South Wales saw the largest drop in investor loans, falling by 15.5 per cent.

Entities

Australian Bureau of Statistics · Mish Tan · New South Wales · Reserve Bank of Australia

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