Australia’s property market is seeing robust credit growth. RBA statistics for October show private credit up 0.7%, with housing credit +0.6%, driven by a 0.9% jump in investor loans versus +0.5% for owner-occupiers. Business credit was also firm (+0.8%), while personal loans eased to +0.2%. In short, lending remains strong. As JP Morgan notes, “credit growth momentum shows no signs of slowing” – RBA rate cuts are already in place, and an expanded 5% first-home deposit scheme (from October) will further underpin borrowing.
Investor vs Owner-Occupier Lending
Investor borrowing is rising faster than ever. Over 40% of new home loans now go to property investors. Regulators warn this amplifies price rises – heavy investor demand can fuel a housing boom much more than owner-occupier buying. To cool risks, APRA will cap very high-debt loans at 20% of new mortgages (DTI >6× income), with separate caps for investors and owner-occupiers. This should mainly constrain speculative investor lending and help balance the market.
Market Impact on Buyers
The outcome is stiffer competition for buyers. Media reports record-high auction clearance rates as scant listings trigger bidding wars. Well-priced homes now often see multiple offers. Home values are already rising (~+1.1% in Oct), and forecasts are for more growth – Domain research even expects record highs by FY26 in cities like Sydney, Brisbane and Adelaide. On the upside, demand has pushed rents to record levels. Capital-city rents are forecast to keep rising through 2026, boosting rental yields for property owners. In other words, investor-backed buying pressure is lifting both prices and potential rental returns.
How Buyers Can Respond
- Get finance sorted early. Secure loan pre-approval so you know your borrowing limit and can bid confidently.
- Set a sensible budget. Just because credit is easy doesn’t mean you should overextend. Keep repayments within your comfort zone.
- Prioritise quality suburbs. Target areas with strong fundamentals (jobs, schools, transport) and limited supply, as these tend to see solid growth. Focus on suburbs that professionals move to, not just the cheapest areas you can afford.
- Choose good-quality homes. When possible, opt for houses or family-friendly homes. Historically, houses on land have outperformed units (~8–9% vs ~6% p.a.) and often deliver stronger long-term yields.
The Buyer’s Agent Advantage
In this high-credit environment, a buyer’s agent can make a big difference. We track the big-picture signals (RBA policy, APRA rules, first-home schemes) to spot trends early. Our agents pinpoint suburbs where demand is growing faster than new supply. Our networks will assist us in finding off-market properties so our clients have the advantage over other buyers. For auction purchasing, we create a well-structured and robust offer with an approved finance source and flexible terms, and we negotiate aggressively, which often leads to our clients saving approximately 5–10% when purchasing the property.To learn more, get in touch with us at Key2Dreamz and explore our Residential Buyer’s Agent and Investment services. You can also call us on +61 439 260 917 or book a free consultation for expert guidance.