Australian Home Lending Plunges as Property Investor Borrowing Drops Record 32% in Q3

Australian home lending slumped in the third quarter as property investor borrowing dropped by a record 32% to 32.3%, the sharpest quarterly fall since records began in 2002. Overall new home loan values decreased 15% to 15.5%, exceeding forecasts, while owner-occupier lending fell 5.3% and first-home buyer loans declined 8.6%. The downturn follows five RBA rate hikes this year to 4.85%, regulatory debt caps, and tax policy changes targeting negative gearing and capital gains. Simultaneously, Commonwealth Bank reported that 90-day-plus mortgage arrears rose to 0.8%, reaching a 12-year high and adding headwinds for the Australian dollar.