Surge in investor lending demand continues to reshape mortgage industry
New data from the Australia Prudential Regulation Authority (APRA) analysed by MPA highlights the extent to which investor lending is reshaping the loan books of Australia’s largest home lenders.
According to the latest Monthly Authorised Deposit-taking Institution Statistics publication, The Big Four banks all expanded their combined owner-occupier and investment housing books in February 2026, albeit at a measured pace month on month:
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Commonwealth Bank reached $621.4 billion in total housing loans, up $2.2 billion or 0.35% compared to January
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Westpac followed with $506.5 billion, adding $1.9 billion or 0.37% over the month
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NAB grew its portfolio to $345.6 billion, a rise of $890 million or 0.26%
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ANZ’s book reached $322.7 billion after a more modest $631 million or 0.2% monthly increase
On an annual basis:
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CBA’s housing lending rose by $40.6 billion over the year to February, a 7% increase
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Westpac lifted its book by $23.1 billion or 4.8%
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NAB recorded an $18.3 billion, or 5.6%, expansion in total housing loans
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ANZ’s portfolio grew by $11.4 billion, up 3.7% year on year
Strikingly, CBA’s investment housing book surged over 10% on a year-on-year basis, comfortably outpacing its Big Four competitors. Investor loans have increased their weighting in CBA’s loan book over time. Between December 2023 and December 2024, for instance, annual growth was closer to 7%.
Non-major ING was a clear outperformer on the investor property side though, with its book soaring more than 36% on a year-on-year basis in February.
The strong growth in these banks’ investor loan book reflects broader mortgage industry trends.
Investor borrowing climbed to a new peak in 2025, showing a 9% annual rise and a 26.4% increase since 2021, according to recent money.com.au research. Lending to owner occupiers rose just 2.7% in the same period, underscoring the extent to which investors are shaping mortgage demand.
“At 41% of mortgage demand, we haven’t seen investors comprising this much share of the market since the final quarter of 2016,” Tim Lawless, Cotality’s executive, research director, said this January.
“Similarly, credit growth for investment housing is rising at the fastest pace since December 2014. Clearly investor confidence remains strong across the housing market despite stretched affordability and relatively low rental yields,” added Lawless.
Australia’s fifth-largest home lender Macquarie Bank, meanwhile, continued its unstoppable march higher, with owner‑occupied housing loans up more than 24% year on year and investment loans nearly topping 30% year-on-year growth. Macquarie’s combined housing book exceeded $170 billion for the first time ever in February.
The large-scale surge in investor lending caught the attention of Reserve Bank of Australia (RBA) governor Michele Bullock last October, when she warned that renewed appetite from investors re-entering the property market could “exasperate the cycle” of runaway house price appreciation.
More investor participation, she warned, could increase loan-to-value ratios and overall leverage. “That introduces vulnerabilities into the system. So that’s the concern,” said Bullock.
Bullock’s comments foreshadowed a recent move from APRA to limit high debt-to-income (DTI) home lending to contain what it sees as a build up of vulnerabilities in the financial system.
“At this point, the signs of a build-up in risks are chiefly concentrated in high DTI lending, especially to investors,” said APRA chair John Lonsdale. “By activating a DTI limit now, APRA aims to pre-emptively contain risks building up from this type of lending and strengthen banking and household sector resilience.”
Not all mortgage books showing growth
Bendigo and Adelaide Bank’s total housing portfolio slipped to about $63.5 billion, down roughly $1.26 billion or 1.95% compared with February 2025, driven by contraction across both owner‑occupied and investment loans over the year.
BOQ’s combined housing book fell to about $52.8 billion, a decline of around $4.6 billion or 8% year on year.
While AMP Bank’s loan portfolio dipped on a month-on-month basis, the total housing book was up around 3.4% annually to $22.7 billion. AMP Bank’s strong focus on later-life property strategies supported 6.2% annual growth in investment housing loans, while owner-occupied loans added around 1.8%.
Banks often put limits on new home lending to manage risk and maintain adequate capital allocation.
