ABS data reveals modest growth in new lending and refinancing in June quarter
Housing affordability showed signs of improvement in the June 2025 quarter, as lending activity increased across owner occupiers, first-home buyers, and investors.
The latest figures from the Australian Bureau of Statistics (ABS) reveal that total new loan commitments for dwellings rose by 1.9% over the quarter, with loan values up 2.0%. Loans to owner occupiers increased by 0.9% in number and 2.4% in value, while first home buyers recorded a 1.7% rise in commitments and a 5.7% jump in loan values. Investor lending also grew, with commitments up 3.5% and values up 1.4%.
The Real Estate Institute of Australia (REIA) has pointed to the data as a potential sign that some of the pressure on home buyers may be easing.
“After a prolonged period of affordability challenges, these figures suggest that some relief may be filtering through to the market,” said Leanne Pilkington (pictured), president of the Real Estate Institute of Australia. “The growth in new loans, particularly among first-home buyers, signals better access to finance and a cautious return of confidence.”
Pilkington noted the importance of investor participation in the housing market. “Investors play a vital role in providing rental housing, and the rise in investor lending is a positive indicator for rental market stability, which is essential as Australia faces ongoing housing supply pressures,” she said.
The ABS data, she added, also showed a notable increase in refinancing by owner occupiers, as borrowers seek improved mortgage terms amid current interest rate settings. “Refinancing activity suggests that many Australians are finding ways to better manage their mortgages, which may help to ease some cost of living pressure,” Pilkington said.
Despite the recent gains, she warned that affordability remains a major issue for many households. “Continued targeted policies to support first home buyers and investors are essential to maintain this positive momentum and ensure the market remains accessible and affordable,” Pilkington said. “REIA continues to advocate for initiatives that improve housing affordability and encourage sustainable growth across the housing market.”
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