Migration must be managed to ease housing pressures, tells Comyn parliamentary committee
Commonwealth Bank’s chief executive, Matt Comyn (pictured top), has cautioned that robust demand for home loans is contributing to rising property prices and may present risks to the long-term stability of the housing market.
Speaking before a parliamentary committee, the bank executive stated that while the bank benefits from increased housing credit, a more moderate pace would be preferable for financial stability and broader access to home ownership.
“Our view would be that a more sustainable credit growth rate in housing would be slightly below the current level,” Comyn said. “I think that's probably pushing a higher level than perhaps policymakers and regulators might be ultimately comfortable with.”
New loan commitments surging
Recent figures from the Australian Bureau of Statistics indicate that new loan commitments for dwellings rose by 6.4% in the September quarter compared to the previous quarter. The Reserve Bank of Australia has noted that overall housing credit growth now exceeds the post-global financial crisis average, driven largely by increased investor activity following lower interest rates.
CBA’s mortgage portfolio expanded by 6% to $664.7 billion in the financial year ending June 30, outpacing other major banks, which reported growth of about 5% for their respective financial years ending September 30. Despite this growth, Comyn suggested that demand for housing loans could ease, given the current outlook for interest rates.
He noted that the bank expects the cash rate to remain at 3.6% through 2026, as inflation remains elevated. This expectation of steady rates may dampen confidence in further rate reductions, potentially moderating credit demand.
Comyn also addressed the issue of migration and its impact on housing supply and affordability. He advocated for a reduction in annual migration numbers to allow infrastructure and housing supply to keep pace with population growth. “Perhaps that number is something in the order of 180,000 per annum,” he said. “It gives both the Commonwealth and states the ability to plan for critical infrastructure, including housing.”
Business leaders have called for a sizeable reduction in migration, as concerns around the nation's housing affordability weigh on millions of Australians.https://t.co/h4z5QxEVol
— Sky News Australia (@SkyNewsAust) November 18, 2025
He acknowledged that increasing housing supply is essential for affordability but pointed to challenges such as the need for coordination between federal and state governments and the availability of skilled labour in the sector.
Comyn’s remarks come as policymakers and regulators continue to monitor the balance between credit growth, housing affordability and economic stability. The bank chief also noted that the government’s first home buyer deposit scheme has had only a minor effect on property prices.
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