Mortgage lodgements fall post rate hikes and budget

Higher interest rates and changes to taxation announced in the federal budget are weighing on Australia’s housing market, with new research revealing a sharp decline in mortgage lodgements. Loan Market’s Application trends report revealed loan applications are down 26 per cent since February this year. By value, the total mortgage lodgements were down 23 per cent, with first-home buyer activity down 23 per cent, investors down 31 per cent while upgraders were least impacted, down 14 per cent. The pullback is said to reflect a strong starting point with the housing market booming through late 2025 and early 2026, prior to the RBA rate hikes and budget. Comparing current lodgements to the same period last year of the last two weeks of June 2025, total mortgage lodgements are down by 18 per cent. Source: Loan Market Group Source: Loan Market Group The average loan size also increased since the start of the year rising 2 per cent, and 26 per cent since July 2023. Loan Market Credit Expert Shay Waraker said there are a number of reasons the property market has cooled. “First-home buyers are facing lower borrowing capacities following three cash rate increases,” she said. A lot of the dr...