Mortgage lending was weaker in the June 2026 quarter, with investors leading the slump

The latest lending indicators data from the Australian Bureau of Statistics (ABS) found that over the June 2026 quarter there were 134,225 new mortgages (excluding refinances) with a total value of $97.648 billion and an average value of $727,494.

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The number of new loans was 5.4% lower over the quarter, which was the largest fall since December 2022; however, they were 0.1% higher than over the same quarter last year.

There were 162,225 refinances over the quarter, 103,046 were external and 59,179 were internal. The number of external refinances was 1.4% lower over the quarter and 1.1% higher over the year whilst internal refinances were 6.9% lower over the quarter and 3.7% higher over the year.

The value of the new loans was 5.2% lower over the quarter, the largest decline since September 2020, with the value 6.8% higher than the same quarter last year.

There was $102.560 billion in refinances over the quarter, $67.083 billion in external refinances and $35.477 billion in internal refinances. The value of external refinances was 2.1% lower over the quarter but 6.1% higher over the year while internal refinances were 6.8% lower over the quarter and 11.8% higher over the year.

The data is clear that both the volume and value of lending is lower over the quarter. In fact, it was the second consecutive quarter in which the number and value of new loans were lower while it was the first quarterly fall in several years for both the number and value of refinances.

It’s not really a surprise to be seeing lending slow with dwelling values falling and new policies announced during the quarter which make investment in housing less attractive.

In fact, the tax changes for investment were only announced around the middle of the quarter and this data includes the rush for SMSFs to purchase before tax changes went live in early August. If anything, I think the falls in lending for investment purposes are going to be much larger over the coming few quarters.