The value of new Aussie home loans hit a record high in the September quarter, according to new research by Canstar.
The total value of new home loans in the quarter hit $191.1bn, a staggering $8.3bn increase on the previous quarter, according to Canstar’s analysis of data from the Australian Prudential Regulation Authority (APRA).
Value of new residential mortgages per quarter (2019-2025). Source: Canstar.
A significant proportion of this growth was driven by a surge in new investor loans, the value of which rose $7.7bn from the previous quarter to a record high of $71.7bn.
New investor loans shot up 24 per cent higher than the same time last year.
New owner-occupier loans grew by a more modest $646 million, but also reached the record high for a quarter, with Aussie homeowners taking out home loans to the value of $119.6bn.
ABS figures show that this increase is not solely due to rising home prices, but also down to more Aussies entering the market.
The total number of new loan commitments for dwellings rose 6.4 per cent in the September quarter, according to the ABS.
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The value of new home loans has grown for both owner-occupiers and investors. Picture: iStock.
Despite record high home loans, Canstar.com.au data insights director Sally Tindall said offset account figures suggested that “households have never been more cashed-up”.
“Offset accounts swelled by an extraordinary $25 billion in just three months, pushing balances to fresh record highs,” she said.
“That kind of firepower gives borrowers a buffer and the confidence to stay in the market as they stare down the barrel of potential rate hikes.”
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Canstar Data Insights director Sally Tindall. Picture: Supplied.
For those Aussies with a mortgage, Ms Tindall said now was the time “to put every spare dollar to work in your offset.”
She also suggested calling your bank to negotiate a sharper rate before potential hikes hit.
“Property prices are tipped to run hard again despite no further rate cuts,” Ms Tindall said.
“Put it all together and 2026 is shaping up to be a year where the market is likely to keep marching upwards, fuelled by cashed-up borrowers, hungry investors and limited supply, even if rates stay elevated.”
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Ms Tindall said the market will remain competitive for buyers in 2026. Picture: Julian Andrews.
According to Ms Tindall, the September quarter’s huge uptick in investor lending has already caught APRA’s attention.
“With new debt-to-income caps landing in February, APRA is clearly preparing for a busier, riskier market in 2026,” she said.
“Under the new rules, APRA will limit banks to approving up to 20 per cent of new mortgages to borrowers with a debt-to-income ratio of six times or more.”
According to APRA’s figures, while still well below the new cap, the proportion of loans with risky debt-to-income ratios has risen to 6.1 per cent in the latest data from 5.5 per cent in the previous quarter.
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