What happened
Mortgage application volume dropped between 12% and 20% across major lenders after 2026–27 federal budget property tax reforms took effect. National home prices fell for a sixth consecutive month in September, sitting 3.3% below their March 2026 peak, while commercial business lending continued to expand.
Why it matters here
Weakening investor demand is dampening housing credit growth, pressuring major bank mortgage margins as competition for fewer new loans intensifies. Lower property values and reduced investor activity also present headwinds to household wealth and broader economic activity.
What to watch
Official Australian home loan approval data and bank competition for mortgage refinancing as property investors reassess holding costs following budget tax changes.
Source
mpamag.com