New home lending in Australia has recorded its largest quarterly fall since official records began, with the value of new loans down 15.5% in the September quarter to A$81.16 billion as property investors pulled back sharply. ## Investors lead the retreat The [Australian Bureau of Statistics](https://www.abs.gov.au/statistics/economy/finance/lending-indicators/sep-quarter-2026) said the total number of new loan commitments for dwellings fell 15.0% in the September quarter to 111,878, while the value fell 15.5% to A$81,157 million, the largest quarterly fall since the series began in the September quarter of 2002. It was the third consecutive quarterly decline. Investors drove the slump. The number of new investor loan commitments fell 30.6% to 35,301 and their value dropped 32.3% to A$24.7 billion, the largest quarterly fall on record for both series. Through-the-year growth in investor loans has fallen from 24.9% in the December quarter of 2025 to minus 38.5%. Owner-occupier lending fell 5.3%, while first home buyer loans fell 8.6% in number. ## Rates and tax changes behind the drop Mish Tan, the ABS head of finance statistics, said the data suggested investor activity was being influenced by factors beyond rising borrowing costs, including the potential impact of tax changes and expectations of lower house prices. Reuters noted that investors have been hit by five central bank rate rises this year, lifting borrowing costs to their highest level in 18 years, and by budget proposals to scrap the capital gains tax discount from July 2027 and ban negative gearing on existing homes. according to [Reuters](https://www.klsescreener.com/v2/news/view/1825025/australia-home-loans-fall-record-15-5pct-by-value-in-september-quarter-amid-investor-exodus). ## What it means for the housing market The lending figures point to a cooling housing market after a year of rising rates and tax uncertainty. Data firm Cotality said home prices have fallen for seven months, and the sustained drop in new lending suggests that weakness is likely to continue.