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Investor Lending Surges to Record Highs in Australian Housing Market

Property Investors Now Represent 40% of Home Loans Amid Rising Prices

Investor Lending Surges to Record Highs in Australian Housing Market?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Recent data reveals a significant resurgence in property investor activity within Australia's mortgage market.
In the three months leading up to September 2025, investors accounted for two in every five home loans, marking the highest proportion in recent history.

Over 57,000 investors borrowed nearly $40 billion to purchase homes during this period, representing a 17.6% increase in loan value compared to the previous quarter. This surge in investor lending coincides with a decline in first home buyer activity, raising concerns about housing affordability and market stability.

Regulatory bodies, including the Australian Prudential Regulation Authority (APRA), are closely monitoring this trend. APRA has indicated that it is considering measures such as limits on new high debt-to-income lending or restrictions on investor and interest-only loans to mitigate potential risks associated with the rapid increase in investor borrowing.

For prospective homebuyers, particularly first-time buyers, this shift underscores the importance of exploring various financing options and seeking professional advice to navigate the competitive housing market. Understanding the implications of increased investor activity can help individuals make informed decisions and identify opportunities that align with their financial goals.

As the market continues to evolve, staying informed about regulatory developments and market trends will be crucial for all participants in the housing sector.

Published:Thursday, 26th Feb 2026
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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