The property market has hit a turning point — for the first time since the Australian Prudential Regulation Authority (APRA) began tracking the data in 2019, investor lending growth has outpaced owner-occupier lending. This shift signals a growing appetite among investors, while still highlighting the strong presence of owner-occupiers. But what does this trend mean for the housing market, and what can borrowers take away from it?
Investors on the rise
In July 2025, investor lending volumes grew by 6.1% year-on-year, compared with 5.6% for owner-occupiers. That may sound like a small margin, but it pushed investor loan books to a record $755 billion. Meanwhile, owner-occupier loans still dominate bank books at more than $1.60 trillion — showing that while investors are gaining traction, owner-occupiers continue to hold the majority share.
Interestingly, the gap between the two segments has widened quickly. In June, investor lending growth edged only 0.2 percentage points ahead of owner-occupiers. By July, the difference was far more significant, showing momentum is building.
Which banks are driving growth?
Not all lenders are moving at the same pace. Macquarie Bank has been the standout, adding $1.48 billion in investor loans in July alone, up 2.73% month-on-month. Its rapid growth in the investor segment has been particularly strong since May.
The Commonwealth Bank of Australia (CBA), the country’s largest lender, recorded the second-biggest increase, adding $1.21 billion to reach $203.3 billion in investor loans — maintaining its spot as the biggest holder of investor mortgages.
Westpac and NAB each saw moderate growth, while ANZ was the only major bank to record a slight decline in investor volumes.
On the owner-occupier side, Macquarie again led the way, with a 1.91% jump, followed by ING Bank. The big four — CBA, NAB, Westpac, and ANZ — posted smaller gains, reflecting steadier demand from owner-occupiers.
ABS data backs the trend
APRA’s findings align with data from the Australian Bureau of Statistics (ABS), which showed that the June 2025 quarter ended with a strong lift in new investor loan commitments.
- 49,065 investor loans were approved in the quarter, up 3.5% from the previous period.
- Total investor commitments hit $32.9 billion, nearly 7% higher than the same quarter in 2024.
- Average investor loan size rose to $674,259.
By comparison, owner-occupier loan approvals grew just 0.8% over the same quarter, showing investors are taking a more aggressive approach.
Why are investors more active?
Industry experts suggest that mindset plays a big role. Investors tend to look at property as a long-term wealth strategy, while many first home buyers and owner-occupiers see the market as harder to enter.
As one broker explained: “Someone on $100,000 may feel they can’t afford a home, yet the same person could buy two investment properties. Investors see the numbers differently.”
Younger buyers are also entering the investor market, driven by fear of missing out, while seasoned investors are expanding their portfolios. From first-time investors to experienced landlords, the activity spans across all levels.
What does this mean for borrowers?
The surge in investor lending shows that despite market challenges, property remains a highly attractive asset. Whether you’re looking to buy your first home or build an investment portfolio, understanding how lenders view the market — and how you can position yourself — is key.
Working with a mortgage broker can help you:
- Compare investor vs. owner-occupier loan options.
- Understand which lenders are most active in each space.
- Structure your finance to suit your long-term goals.
Investor lending is climbing at a record pace, but opportunities exist for both investors and owner-occupiers. With the right strategy and support, you can take advantage of today’s market shifts to make confident property decisions.
Ready to make your next property move? Contact us today to explore your options.