Lending falls across all borrower types in the March quarter, with investor lending expected to slide further on budget changes
The number of new home loans in Australia fell 6.2% to 139,794 in the March quarter of 2026, according to figures released by the Australian Bureau of Statistics (ABS).
"Falls were recorded across all borrower types this quarter, following strong growth throughout 2025 and cash rate rises in February and March," said Mish Tan, head of finance statistics at the Australian Bureau of Statistics.
"Despite this quarter's fall, lending activity remains at high levels, with total new home loans 8.6% higher than a year ago."
The total value of new housing loans declined 3.8% to $103 billion in the quarter — the weakest quarterly result in three years — though it remained 18.5% higher on an annual basis.
"Annual growth in the value of new lending has continued to outpace growth in the number of loans, a trend we have seen since December quarter 2023," Tan said. "The average home loan size is now 9% higher than a year ago at $724,415. This is consistent with rising property prices, with the strongest growth in Western Australia, Queensland and South Australia."
Owner-occupier lending recorded the steepest fall, with loan numbers down 6.9% and value declining 4.3% from the previous quarter.
First-home buyer lending fell 4.3% by number and 6.7% by value, with the average first homebuyer loan size rising modestly to $614,048 — up just 1.1% after an 8.5% increase the prior quarter when the federal government's 5% Deposit Scheme was expanded.
All states and territories recorded declines in first-home buyer lending except the Australian Capital Territory, which rose 6.5%.
Investor lending, which had reached record levels across the preceding two quarters, fell 5.3% in number and 3% in value. Further declines are widely anticipated following Tuesday's federal budget, which removed negative gearing and capital gains tax concessions for future property investors.
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