New mortgage lending data has shown where Australians are getting approved for home loans the fastest – and where they’re not.
Loan Market Group – Australia’s largest mortgage aggregator – has released new figures showing national loan approvals are up 15 per cent year-on-year in the March quarter, driven by surging activity in New South Wales, Queensland, South Australia and Western Australia. But Victoria is lagging well behind, with just 3 per cent growth.
The report draws on Loan Market Group’s national broker network of over 6000 brokers and provides one of the most comprehensive, real-time views of Australia’s housing credit activity. Brokers now write 76 per cent of all residential home loans.
“Our data shows Australians continue their love affair with property, with loan approvals growing 15 per cent year-on-year in the March quarter,” Loan Market Group Executive Chairman Sam White said.
“But that momentum is uneven. Approvals are up 24 per cent in New South Wales and South Australia, and 21 per cent in Queensland, while Victoria is barely moving at 3 per cent growth.”
MORE NEWS
‘Worse, reckless’: Albo, Dutton housing plans slammed
Albo, Dutton wage war on key election issue
Australia’s shock new 40 best suburbs revealed
Loan Market Group Executive Chairman Sam White said Australia’s loan approval momentum is uneven.
The report shows investor lending is leading the charge in NSW (up 32 per cent) and SA (up 50 per cent), while QLD is seeing strong owner-occupier growth across the board including the Sunshine Coast (+24 percent), Far North Queensland (+25 percent) and Brisbane (+25 percent) since Q3 2022.
In contrast, Melbourne’s retreat is sharp: investor lending in the western suburbs is down 43 per cent, with total VIC loan approvals down 8 per cent since Q3 2022.
“It continues to be a challenging time for homebuyers in parts of Sydney and Melbourne, where borrowing capacity has been heavily impacted by the rate hiking cycle,” Mr White said.
“We’re seeing strong growth in areas where housing is more affordable, and where buyers are getting more value for their loan.”
MORE NEWS: Silent surge pushing Aussie renters to breaking point
Source: Loan Market Group
Jon Mott, banking analyst at Barrenjoey, said the report provided a timely view of the Australian housing market.
“The first of the interest rate cuts did not stimulate demand, with the data showing approvals fell 4.5 per cent in March,” he said.
“We expect the RBA will continue a cutting cycle, which will lead to improved borrowing capacity to support a broad-based lift in housing credit.”
David McQueen, CEO of Loan Market, said investors are already positioning themselves ahead of the rate cycle.
“Investor confidence is growing beyond the capital cities, especially in areas like Perth, coastal Sydney and regional Queensland. That kind of activity doesn’t happen unless buyers see long term upside and rising rental demand,” he said.
“The next phase of loan growth is likely to come from owner-occupiers re-entering the market as rates fall and confidence improves.”
MORE NEWS: Telltale signs of a seller’s market
Source: Loan Market Group
Loan Market Group’s data shows median approved loan sizes have risen sharply – from around $450,000 to over $600,000 in QLD, $430,000 to $580,000 in WA, and $410,000 to $560,000 in SA since late 2022 – reflecting heightened buyer competition and larger investor transactions.
In contrast, Victoria’s median loan size has remained largely flat, holding just above $500,000.
“The numbers speak for themselves,” McQueen said.
“Buyers are redrawing their maps moving beyond the city fringe into regions that were once considered ‘too far’. It’s a direct response to affordability pressure, but also a mindset shift around what home and investment look like.”
English (US) · 