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Investor lending hits all-time high
The total value of new investor loans has jumped 18.7 per cent over the past year, ABS research has found.
Investor lending soared to new heights in the September quarter, as falling borrowing costs and low vacancy rates gave investors a boost, according to Australian Bureau of Statistics (ABS) data.
The number of new investment loans skyrocketed 13.6 per cent to 57,624 in the September quarter, resulting in a growth of 12.3 per cent through the year.
This is the largest number of investor loans on record, beating the previous record achieved in the March quarter 2022 (when 52,787 investor loans were written).
Year on year, new loans from investors have shot up 18.7 per cent in value.
The total value of new investment loans has also reached a new record high. Investor lending totalled $39.8 billion in the September quarter, up 17.6 per cent or $6.0 billion since the June quarter.
This beats the previous record of $33.8 billion achieved in the previous quarter (June 2025 quarter).
According to the data, investor loans grew by $11,686 on average to $685,634 over the quarter.
There was growth in the number of investment loans across all states and territories.
Investor lending rose 19.0 per cent in NSW, 18.5 per cent in Victoria, 11.9 per cent in Queensland, 9.1 per cent in Western Australia, 7.1 per cent in South Australia, 27.8 per cent in the ACT, 10.6 per cent in Tasmania, and 5.1 per cent in the Northern Territory.
More broadly, the total number of new mortgages rose 6.4 per cent in the September quarter to 141,470, while the value rose 9.6 per cent to $98.0 billion.
Speaking of the figures, ABS head of finance statistics Mish Tan said: “Falling borrowing costs and low vacancy rates are favourable conditions for investors."
“Strength of lending for investment also pushed the total value of all new dwelling loans to a record high in September."
“Both the number and the value of new investment loans reached record highs in September,” Tan added.
In fact, the number of investment loans has increased since March 2023, with investment loans now making up around 40 per cent of the total of new loans, according to the ABS.
First home buyer lending ticks up
Lending to first home buyers (FHBs) grew during the September quarter, although by a smaller margin than investor loans.
The number of owner-occupied loans for FHBs grew by 667 loans (2.3 per cent) in the September quarter, and 0.9 per cent through the year.
The value of new FHB loan commitments rose 1.1 per cent.
There were rises in FHB activity in Victoria (1.4 per cent), NSW (0.6 per cent), South Australia (1.9 per cent), Tasmania (2.0 per cent) and the ACT (1.0 per cent).
Average owner-occupied loans for first home buyers rose $5,532 to $560,249.
Overall, the number of new owner-occupier loan commitments for housing rose 2.0 per cent in the quarter, while the value rose 4.7 per cent.
There were 83,846 new owner-occupied loans approved in the quarter, a 2.0 per cent rise compared to the previous quarter, and growth of 1.7 per cent through the year.
The total value was $58.2 billion, a rise of 4.7 per cent ($2.6 billion). The average loan size rose by $15,873 to $693,801 over the quarter.
The quarterly rise in the number of loans was driven by growth in NSW (4.9 per cent), Victoria (2.4 per cent), and the ACT (6.7 per cent).
While growth in the number of loans refinanced between lenders was relatively flat at around 0.1 per cent in the September quarter, refinancing activity was 18.7 per cent higher than the same time last year.
This is likely because the cash rate fell 75 basis points between September 2024 and September 2025.
Commenting on the rise in investor lending, the Commonwealth Bank of Australia (CBA) senior economist Ashwin Clarke said: “The investor share of new housing lending has ticked up strongly but remains below its highs in the 2010s when investor loan speed limits were introduced.”
Maree Kilroy, senior economist for Oxford Economics Australia, added: “The December quarter is set to show a strong increase in first home buyer demand given the commencement of the expanded Australian Government 5 per cent deposit scheme last month, which anecdotally has seen a strong take-up.”
Property investment has increased over the past year, according to PropTrack research, with investors now making up around their highest share of new lending since 2017.
This article was originally featured on Real Estate Business sister brand Broker Daily.