This year could prove a ripe market for investors this year, despite the Reserve Bank's three consecutive rate rises.
Investors remain unperturbed by the barrage of interest rates hikes hitting homeowners this year, new data has revealed.
Mortgage Choice home loan submission data for the March quarter revealed the value of loans to investors was up 30.5% nationally year-on-year, in a clear sign that it’s always a good time to invest in real estate and homeowners are prepared to put more of their money in bricks and mortar.
Unpacking the research, Mortgage Choice chief executive Anthony Waldron said that while four in five prospective buyers have cut back on spending to help save for a home loan deposit (an increase on 10% on the last quarter), investors have not been turned off the market despite rising interest rates.
The RBA handed down a third consecutive cash rate hike earlier this month, bringing it to 4.35%.
The Reserve Bank hiked the cash rate again earlier this month. Picture: Lisa Maree Williams
The Mortgage Choice Home Loan Report, which draws on home loan submission data from Mortgage Choice and a nationally representative survey of 1,000 consumers, highlights home loan trends, as well as intentions of Australian borrowers and prospective buyers.
It comes as a slew of tax changes announced in the federal budget prepare to reshape the property investment landscape from mid next year.
The federal budget on Tuesday confirmed negative gearing will be limited to new housing from 2027 and the capital gains discount will also be abolished.
The government says the tax break will instead help an additional 75,000 people buy their first home in the next decade.
Treasurer Jim Chalmers unveiled a major property tax overhaul in this year's budget. Picture: Hilary Wardhaugh
However, loan submission data from Mortgage Choice shows the average loan size was up almost 11% nationally over the March quarter, climbing nearly $68,000 year-on-year, and buyers are not backing away.
“Borrowers in Queensland and Western Australia were also taking out larger loans, with average loan sizes up more than $80,000,” Mr Waldron said.
| Loan purpose | Change in value year-on-year |
| Investment | 30.5% |
| Owner occupied | 14.8% |
| Total | 19% |
Meanwhile, LJ Hooker group head of research Mathew Tiller announced in January that a lack of new housing supply, shortage of existing stock and investor appetite was likely to keep housing market conditions stable for 2026.
He pointed out that tight rental conditions have attracted investors back to the property market.
“While no one likes an interest rate rises, it won’t switch off demand, with data showing there are still buyers out there," he said.
"Population growth is still elevated, new supply lagging and listings are tight in many markets, so there is a floor under prices.”
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