Australia Q1 Home Loans Fall

The value of new owner-occupier loan commitments for dwellings in Australia declined by 4.3% quarter-on-quarter to AUD 61.4 billion in Q1 2026, reversing a downwardly revised 9.4% growth in the previous quarter. First-home buyer demand slipped 6.7%, after surging 15.2% in Q4, which had marked the sharpest rise in two years. Demand from non–first-home buyers also dipped 5.0%, following a 6.5% increase previously. On an annual basis, owner-occupier lending jumped 14.3%. Meanwhile, investment lending for housing fell 3.0% to AUD 41.5 billion, swinging from a 8.2% decrease in Q4. Year-on-year, investment loan values jumped 25.3%.

The value of new owner-occupier loan commitments for dwellings in Australia jumped 10.6% quarter-on-quarter to a record high of AUD 65.3 billion in Q4 2025, accelerating from an upwardly revised 6.2% gain in the previous quarter. First-home buyer demand jumped 15.5%, marking the sharpest rise in two years after subdued performance in Q3. At the same time, demand from non–first-home buyers continued to grow (6.5% vs 6.5%). On an annual basis, owner-occupier lending jumped 9.8%. Meanwhile, investment lending for housing grew 7.9% to AUD 43.0 billion, slowing sharply from a downwardly revised 9.2% increase in the prior period. Year-on-year, investment loan values surged 31.8%.

The value of new owner-occupier loan commitments for dwellings in Australia rose 4.7% quarter-on-quarter to a 3-1/2-year high of AUD 58.2 billion in Q3 2025, accelerating from a downwardly revised 2.2% gain in the previous quarter. Growth was driven by stronger demand among non–first-home buyers (6.2% vs 4.7% in Q2), while lending to first-home buyers slowed sharply (up 1.1% vs 5.5%). On an annual basis, owner-occupier lending jumped 9.8%. Meanwhile, investment lending for housing soared 17.6% to AUD 39.8 billion in Q3, sharply picking up from an upwardly revised 2.6% increase in the prior period. Year-on-year, investment loan values surged 18.7%.