Money.com.au’s latest State-by-State Mortgage Insights Report shows investor lending has hit a fresh peak, even as dynamics diverge sharply across the states.
Nationwide, 205,533 new investor loans were issued over the past year, up 9% year-on-year and eclipsing the previous peak of 203,515 loans in the year to June 2022. Since 2021, national investor lending volumes have risen 26.4%.
Investor growth is being led by Victoria, where lending rose 12.9% annually, alongside above‑market growth in NSW and South Australia, both recording more than 10% investor loan growth.
At the same time, the gap between NSW loan sizes and the rest of the country is narrowing as prices accelerate faster in other states. Outside NSW, owner‑occupier loan sizes climbed 9% over the past year to $628,975, outpacing NSW’s 6% growth. As a result, NSW owner‑occupier loan values are now 29% higher than the rest of the country, down from 36% two years ago. Among investors, the average loan-size gap has also narrowed, from 48% to 40%.
The state-by-state lending shifts come as Cotality’s latest housing chart pack shows national dwelling values rising 8.6% in 2025 amid tight listings and faster sales, with competition fiercest at the more affordable end of the market – a combination that is keeping affordability pressures elevated and driving strong demand for finance from both investors and first-home buyers.
NSW investor lending has reached record levels, with 62,501 loans issued after 10.5% annual growth, making it one of only two states – alongside South Australia – to hit a new peak.
Growth is being led by lending for existing homes. Investor loans for established dwellings rose 13.2%, compared with 2.7% growth in the owner‑occupier segment. Within the investor segment, loans for existing dwellings, construction and land all reached new records in NSW, pointing to sustained demand across multiple property types.
Money.com.au property expert Debbie Hays (pictured) said that while investors tend to prefer existing stock, they are also managing risk.
“Rather than chasing a single strategy, investors are diversifying across property types," Hays said. "That’s typically a sign of a mature market, where buyers are balancing yield, future growth, and development potential. Some are prioritising immediate rental returns through existing stock, while others are positioning for future supply shortages by buying land to build on or hold.”
Since 2021, investor lending in NSW has grown by 16%.
Victoria is currently the fastest‑growing major state for investor lending, with loans rising 13% annually to 47,732 – up from 9% growth a year earlier. The state also recorded its largest quarter on record for investor loan numbers, signalling a decisive shift in investor momentum.
Growth is driven by demand for existing dwellings, with loans in this segment up 19% annually to 36,363. Investor activity is closing the gap with Queensland: in the most recent quarter, Victoria issued 695 more investor loans than Queensland, although the Sunshine State still holds a narrow annual lead of 364 loans. Another strong quarter could see Victoria reclaim second place in the national investor loan market for the first time in several years.
Queensland, meanwhile, remains one of the strongest owner‑occupier markets, with lending up 4.6% annually, well above the national average. Investor lending grew 7.9% – below the national rate and sharply down from 17% a year earlier.
Rather than expanding portfolios, Queensland investors are increasingly doubling down on existing properties. Lending for alterations and refinancing hit record levels, with 47,339 loans issued across the two categories, pointing to a shift toward upgrading homes and restructuring debt.
Hays said Queensland may be entering a more mature phase of the cycle, although investor demand is likely to remain supported by major infrastructure spending and the lead‑up to the Brisbane 2032 Olympics.
South Australia is outperforming the national market, with owner‑occupier lending up 3.5% and investor lending rising 10.1%, both above national growth rates.
SA also leads the nation in new housing lending, recording 56.6% growth in owner‑occupier new‑build loans and 25.2% growth in investor lending for new builds. New housing now accounts for a record share of owner‑occupier lending in SA, with one in 11 loans for new builds versus a national average of one in 16.
Western Australia, by contrast, is the only state to record a decline in owner‑occupier lending over the past year, with loan numbers down 1.6% to 40,758. Investor momentum has also stalled, with annual investor lending slowing from 10% to zero. WA’s share of investor loans has slipped from 12.8% to 12.2%, with most of that activity flowing east to NSW and Victoria.
Tasmania posted the strongest overall home‑loan growth, with owner‑occupier lending up 11.1% and investor lending rising 14.1%. Even so, total loan volumes in TAS remain about 25% below 2022 levels, suggesting a recovery phase rather than a boom. Owner‑occupiers account for 72.7% of Tasmania’s lending market – well above the national average of 61.7% – underscoring its very different profile to investor‑led states like NSW and Queensland.
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