Property investors now hold their largest share of the mortgage market on record, new analysis from Money.com.au has revealed.
According to ABS data, investment loans made up 38% of all new lending (196,699 loans) in the year to June 2025, while owner-occupier loans accounted for 62% (324,972 loans).
That leaves investors trailing homebuyers by just 24 percentage points — the narrowest gap since the ABS began tracking investor loans in 2019.
Just four years ago, the gap was more than double. In the year to March 2021, investors made up only 24% of new loans, compared to 76% for owner-occupiers, highlighting how quickly investor activity has rebounded.
Money.com.au mortgage expert Debbie Hays (pictured) says the investor resurgence marks a key turning point in Australia’s housing cycle.
“It means the homebuyer segment is becoming less the backbone of the market. Investors are now playing a much larger role in shaping house prices, affordability, supply and even influencing housing policy,” Hays said.
“It wouldn’t surprise me if the government once again raised the prospect of negative gearing reforms to level the playing field.”
While confidence among investors is at an all-time high, Hays warned it’s a “double-edged sword.”
“On one hand, it signals all-time high confidence in property as an asset class," she said. "On the other hand, it means first-home buyers and owner-occupiers are competing with equity-rich buyers, which will inevitably push prices higher and widen the affordability gap.”
The average investor loan size now sits at $667,512, almost identical to $661,534 for owner-occupiers, suggesting both groups are borrowing at similar levels.
Hays says the surge in investor lending will also have ripple effects across the rental market.
“More investors coming into the market can add to rental supply, since many of those properties end up in the rental pool. In theory, that should give renters more choice,” she said.
“But with demand for rentals already outstripping supply, a surge in investor activity can only fuel higher rents. Investors will look for higher rental yields to service their larger loans, and that translates into higher asking prices for tenants.”
For brokers, the shift signals renewed investor appetite and potential growth in loan volumes as investors regain dominance in the lending market.
With rates now steady and confidence returning, brokers may see stronger demand for pre-approvals, refinancing, and investment portfolio advice.
Understanding how investor momentum and rate stability intersect will be crucial for helping clients navigate new opportunities in a tightening affordability environment.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
