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Investor loans soar, creating hot opportunities for agents as owner-occupier growth lags behind.
In the June quarter, there were a total of 129,994 new loan commitments, up 1.9 per cent from the March quarter.
In this same period, investor loans grew by 3.5 per cent, a total of 49,065. Meanwhile owner-occupier loans grew by just 0.9 per cent, a total of 80,929.
The lending indicator data recently released by the Australian Bureau of Statistics (ABS) highlighted slight growth in the lending market, largely fuelled by investor activity.
First home buyer new loan commitments reached 28,861, 1.7 per cent higher than the previous quarter.
Non-first home buyers saw more activity, with a total of 52,331 new loans, 2.4 per cent higher than the previous period.
This heightened investor activity is playing a crucial role in driving construction rates.
According to the Housing Industry Association’s (HIA) chief economist Tim Reardon, investors were responsible for 41 per cent of new homes financed for construction in the past year.
He said they typically support a third of this activity, but due to lower levels of owner-occupiers, are taking a greater role.
“Investors are not as adversely impacted by a rise in the cash rate, as they are not as sensitive to change in economic conditions or interest rates,” said Reardon.
This data mirrors a consistent trend in 2025 that investor activity growth is exceeding that of owner-occupiers.
A PropTrack study found that this is true for just about all areas of the country apart from Victoria.
Report author Angus Moore said the state was the “key exception” as investors exit the market.
The value of loans throughout the June quarter reached $87.7 billion, 2 per cent higher than the previous quarter and 7.2 per cent higher than the same period last year.
Owner-occupier loans made up $54.7 billion of the total, up 2.4 per cent from the March quarter and 7.4 per cent from the June quarter 2024.
Investor loans totalled $32.9 billion over the June quarter. This was 1.4 per cent higher than the preceding quarter and 6.9 per cent more than last year.
“We’re just shy of the investor loan peak set in 2022, but this time, the uptick in activity is happening in a very different rate environment. With rates falling from a much higher base and more cuts likely, many cashed-up investors see this as their window to strike before competition returns from owner-occupiers and first home buyers,” said Money.com.au’s general manager of lending, Jacob Overs.
The ABS data highlighted increased activity from borrowers. Following the RBA rate cut on 12 August, demand is likely to pick up even further as borrowers take advantage of the third rate cut of the year.
According to Canstar, if a lender implements the full 0.25 per cent cut, borrowers with a $600,000 mortgage will have an extra $89 in their pocket each month, and 5.54 per cent will be the new average owner-occupier variable rate.
An analysis by Domain revealed just how much extra borrowing power this cut will grant Aussie households, based on how much they earn:
- For an income of $50,000, borrowing power would be lifted to $4,000.
- $100,000: $11,400
- $150,000: $17,300
- $200,000: $23,700
- $250,000: $30,900
- $300,000: $37,000
- $350,000: $42,100
- $400,000: $48,700
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