Investor Borrowing Rising

Investment loans are rising at the fastest rate in a decade – despite concerns the upcoming Federal Budget will toughen capital gains tax levels and negative gearing.

Reserve Bank of Australia data shows investor loans grew in the year to March by 9.6% – the fastest level since September 2015. In the year to March 2026, loans to owner-occupiers rose by 6.2%.

Data from the Australian Prudential Regulation Authority (APRA) shows that the investor share of Australia’s loan market has risen for ten consecutive months.

It says investment loans now account for 32.5% of all residential lending on the books, up by $48.4 billion to $800.5 billion between June 2025 and March 2026.

ANZ economist Madeline Dunk expects investor housing credit to slow, especially if interest rates continue to rise.

“We’ve seen that drop-off in activity in the housing market and a lot of that will be driven by slowing in investor activity,” she says.