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Westpac Economics

May 14, 2026

Australian Dwelling Finance Bulletin

Market ReportReal EstateMacro Economic IndicatorsFinancialsReal Estate

Australian dwelling finance approvals fell by 3.8% in Q1 2026, the sharpest drop in three years, driven by owner-occupiers and a slump in investor new-build loans.

Key Takeaways

  • 1.New dwelling finance approvals fell 3.8% in Q1 2026, marking the largest quarterly drop in three years.
  • 2.Owner-occupiers led the market decline with loan values falling 4.3% qtr, primarily driven by first home buyers.
  • 3.Investor lending saw its steepest drop since 2022, falling 3.0% qtr, as new-build purchase loans slumped 16.1%.

Table of Contents

  • Key points
  • Broad-based declines in home lending
  • Corporate Directory
  • DISCLAIMER

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Authors

Neha Sharma

Themes

Housing Market PullbackImpact of Monetary PolicyFiscal Policy ChangesConstruction Cost Pressures

Regions

Asia PacificAustralia