Westpac sees 20% drop in mortgage applications after Australia scraps property tax breaks

Westpac said mortgage applications dropped 20% after Australia’s Labor government announced changes to property-investor tax concessions, signaling immediate pressure on the housing market. The bank warned investor housing-credit growth will slow sharply, from 9.1% in 2026 to 4.5% in 2027, implying weaker credit demand and potential moderation in housing-related economic activity. The article suggests policy changes are already affecting borrower behavior and could weigh on bank loan growth and property investment sentiment in Australia. As the story centers on macro and housing-market implications rather than a company-specific catalyst, the market impact is mainly on Australian financials and housing exposure, with a cautious tone toward credit growth and mortgage activity.