Australia’s property investor borrowing rises at fastest rate in a decade – despite interest rate rises

Owner-occupier mortgage growth slowed under growing costs while investor loans grew by $42bn in the year to March, a 9.6% increase Follow our Australia news live blog for latest updates Get our breaking news email, free app or daily news podcast Property investor borrowing rose at its fastest rate in a decade in March, according to the Reserve Bank, despite higher interest rates and speculation about property tax changes. Owner-occupier loan growth slowed under the weight of growing mortgage costs but investor lending is continuing its record surge. Bank loans to Australian investors grew by $42bn in the year to March, a 9.6% increase and the fastest rate since September 2015, according to the central bank’s statistics. Investors borrowed a record near-$43bn in 2025 as interest rates fell and home prices surged. Loans to owner-occupiers rose only 6.2% in the year to March, slowing since December as interest rates pushed buyers out of the market. Auction clearance rates have dropped to below 60% and price growth has slowed. Loan Market, a mortgage broking company saw first home buyers’ applications drop by a third after a brief bump after March’s rate rise. Investor applicatio