New investment loans in Australia reached record levels during the September quarter of 2025, according to the Australian Bureau of Statistics (ABS). The data indicates a robust expansion in the investment lending sector, driven by a combination of factors including lower borrowing costs and tight rental market conditions. The number of new investment loans approved climbed to 57,624, marking a 13.6 per cent increase from the previous quarter and a 12.3 per cent rise compared to the same period last year.
The total value of these loans also experienced substantial growth, increasing by 17.6 per cent to reach $39.8 billion. This surge in value pushed the average investment loan size up by $11,686 to $685,634. According to ABS head of finance statistics Dr Mish Tan, investment loans now represent approximately 40 per cent of all new dwelling loans, highlighting the sector’s increasing significance in the overall mortgage market.
Owner-occupied loans also saw gains, although at a more moderate pace. The number of new owner-occupied loan approvals rose by 2 per cent on the quarter to 83,846, with a total value of $58.2 billion. First home buyer activity also increased, with 29,637 new loans approved, representing a 2.3 per cent rise. The average size of a first home buyer loan was recorded at $560,249.
These figures underscore the continued dynamism of the Australian property market, with both investors and owner-occupiers contributing to the overall growth in lending activity. The ABS data provides a comprehensive snapshot of the current state of the housing finance sector and its key drivers.
