Investor lending for new homes hits record high as broader mortgage market plunges

Government tax reforms could be boosting new housing supply with new analysis revealing the biggest jump in the number of investor loans for newly built homes since records started. The ABS Lending Indicators data show a record breaking surge of 10,923 investor loans for new homes during the June quarter, a rise of 21.7 per cent from the same period the year before. Investor loans for existing homes still make up a larger share of investment lending but have fallen by 14.8 per cent since the March quarter. The fall in total investor lending marks the sharpest quarterly fall since March 2020 and is equivalent to around 7,000 fewer loans compared to the first quarter of 2026. MORE: 22pc down: Mass exodus crushes Albo move Source: Primara Research / HomeLoanRates.com.au analysis of ABS Lending Indicators, June 2026 Investor loans for new homes now make up 20.8 per cent of all investment loans in the ABS dataset, with four in five loans taken out for construction instead of purchases of existing stock. Peter Drennan is head of research for Primara Research and said that investor demand is one of the only areas of growth across all new loans despite a recent downturn in mortgage lending...