CBA and Macquarie lead expansion as ANZ sees small contraction
The value of housing loans held by authorised deposit-taking institutions (ADIs) climbed to a record $2.43 trillion in December, supported by rising property prices and three cash rate cuts delivered in 2025, according to the latest figures .
Latest monthly statistics from the Australian Prudential Regulation Authority (APRA) shows total housing loans at ADIs increased by $17.8 billion in December, a 0.7% rise on November.
Within that total, ANZ recorded a small contraction in its mortgage portfolio, with its home loan book declining by $46 million, or 0.01%. This was the bank’s first monthly fall since March 2022, prior to the previous cash rate tightening cycle.
Commonwealth Bank of Australia (CBA) posted the largest monthly increase among the major banks, with its housing book expanding by almost $5 billion, or 0.8%, over the month. Macquarie Bank again grew more quickly than its larger rivals in percentage terms, increasing its housing loan balances by 2.4%, or $3.9 billion.
Owner-occupier lending rose more strongly than investor lending in December. However, across 2025 as a whole, investor housing credit expanded at a faster rate.
Over the year, investor loan balances rose 7.4%, outpacing the 6.2% annual growth recorded for owner-occupier mortgages.
“The mortgage market hit yet another record high with the total value of residential home loans reaching an astounding $2.43 trillion in December,” said Sally Tindall (pictured right), data insights director at Canstar.com.au. “The market continues to expand on the back of sustained property price growth in 2025, fuelled by three cash rate cuts.
“For new borrowers, their borrowing capacity will shrink as rates rise, but the question is whether this will put a handbrake on mortgage growth.
“The next six to 12 months will be interesting now that rate hikes are back on the table. While rising rates typically reduce the maximum amount people can borrow, the last spate of hikes, which saw the cash rate rise by an astronomical 4.25 percentage points, resulted in some sluggish months but by no means a retreat.”
According to Tindall, a growing concern for the RBA is likely to be the excess cash buffers households are still building, with money in the bank hitting a new high of $1.71 trillion.
“While it’s fantastic to see Australians put a priority on building up their buffers, it could prove problematic for the RBA if households decide to continue spending,” she said.
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