Budget tax changes spark record collapse in investor home loans
Investor home loan commitments fell 27 per cent below their 2025 peak, marking the largest drop in any interest rate hiking cycle.
Investor home loan commitments fell 27 per cent below their November 2025 peak, marking the largest drop in any interest rate hiking cycle. The Reserve Bank raised rates to an 18-year high, but economists point to the May budget as the main cause.
Labor abolished negative gearing and cut the capital gains tax discount for investment properties, while owner-occupiers got the benefits. Owner-occupier lending declined only modestly, showing the policy is shifting money from investors to home buyers as intended.
Home prices have already fallen 8.1 per cent from their March peak.
- 27 per cent below November 2025 peak
- Loan commitments decline
- 8.1 per cent
- Price fall from March peak
- 15 per cent (Commonwealth Bank)
- Forecast decline ahead
- 18-year high
- RBA rate cycle high
Why it mattersHome investors are withdrawing from the market, which should help first-time buyers compete for properties but may also slow house building.
AustraliaAustralian investors face shrinking returns on property portfolios as tax changes bite, while first-home buyers get better market conditions and affordability may start to improve.
✓ Claims checked; 1 flagged for review. checked 1 d ago
