Australia Q3 Housing Lending Hits 5-Quarter Low

The value of new owner-occupier loan commitments for dwellings in Australia fell 5.3% quarter-on-quarter to AUD 56.45 billion in Q3 2026, the lowest in five quarters, deepening from a marginally revised 2.0% decline in the previous period. First-home buyer demand dropped further (-8.0% vs -5.4% in Q2), as did lending to non-first-home buyers (-3.5% vs -2.7%). On an annual basis, owner-occupier lending dipped 4.6%. Meanwhile, investment lending for housing tumbled 32.3% to AUD 24.71 billion, its lowest level in three years, much steeper than a 11.2% decline in Q2. On a yearly basis, investment loan values plunged 38.1%.

The value of new owner-occupier loan commitments for dwellings in Australia fell 1.9% quarter-on-quarter to AUD 60.5 billion in Q2 2026, the lowest in three quarters, easing from a downwardly revised 3.5% decline in Q1. First-home buyer demand edged up 0.2%, reversing a 4.8% contraction in the previous quarter, while lending to non-first-home buyers declined 3.1%, moderating from a 3.9% fall. On an annual basis, owner-occupier lending rose 6.0%. Meanwhile, investment lending for housing tumbled 10.2% to AUD 37.1 billion, its lowest level in a year, deepening from a 3.2% decline in Q1. Despite the quarterly weakness, investment loan values remained 8.1% higher year-on-year.

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%.