Loan Market Group – Australia’s largest mortgage aggregator – has released new figures showing national loan approvals are up 15 percent year-on-year in the March quarter, driven by surging activity in New South Wales, Queensland, South Australia and Western Australia. But Victoria is lagging well behind, with just 3 percent growth.
The report draws on Loan Market Group’s national broker network of over 6,000 brokers and provides one of the most comprehensive, real-time views of Australia’s housing credit activity. Brokers now write 76 percent of all residential home loans.
“Our data shows Australians continue their love affair with property, with loan approvals growing 15percent year-on-year in the March quarter,” said Sam White, Executive Chairman of Loan Market Group.
“But that momentum is uneven. Approvals are up 24 percent in NSW and South Australia, and 21 percent in Queensland, while Victoria is barely moving at 3 percent growth.”
The report shows investor lending is leading the charge in NSW (up 32 percent) and SA (up 50 percent), while Queensland is seeing strong owner-occupier growth across the board including the Sunshine Coast (+24 percent), Far North Queensland (+25 percent) and Brisbane (+25 percent) since Q3 2022. In contrast, Melbourne’s retreat is sharp: investor lending in the western suburbs is down 43 percent, with total VIC loan approvals down 8 percent since Q3 2022.
“It continues to be a challenging time for homebuyers in parts of Sydney and Melbourne, where borrowing capacity has been heavily impacted by the rate hiking cycle,” said White.
“We’re seeing strong growth in areas where housing is more affordable, and where buyers are getting more value for their loan.”
Jon Mott, banking analyst at Barrenjoey, has reviewed the report and said with Loan Market Group’s strong reach these insights provide a unique and timely view of the Australian housing market.
“The first of the interest rate cuts did not stimulate demand, with the data showing approvals fell 4.5 percent in March,” he said.
“We expect the RBA will continue a cutting cycle, which will lead to improved borrowing capacity to support a broad-based lift in housing credit.”
David McQueen, CEO of Loan Market, said investors are already positioning themselves ahead of the rate cycle.
“Investor confidence is growing beyond the capital cities, especially in areas like Perth, coastal Sydney and regional Queensland. That kind of activity doesn’t happen unless buyers see long-term upside and rising rental demand,” he said.
“The next phase of loan growth is likely to come from owner-occupiers re-entering the market as rates fall and confidence improves.
“Our brokers are telling us they’re working with more clients who are chasing lifestyle and affordability and they’re not afraid to move for it.
“Whether it’s regional hubs, outer suburbs or interstate hot spots, people are rewriting the playbook on where they choose to live, invest and raise a family.”
Loan Market Group’s data shows median approved loan sizes have risen sharply in Queensland, Western Australia and South Australia — from around $450,000 to over $600,000 in QLD, $430,000 to $580,000 in WA, and $410,000 to $560,000 in SA since late 2022 — reflecting heightened buyer competition and larger investor transactions. In contrast, Victoria’s median loan size has remained largely flat, holding just above $500,000.
“The numbers speak for themselves,” McQueen said.
“Buyers are redrawing their maps moving beyond the city fringe into regions that were once considered ‘too far’. It’s a direct response to affordability pressure, but also a mindset shift around what home and investment look like.
“The national story doesn’t hold up at a postcode level. What’s booming in one region is flat in the next and that’s where brokers are playing a critical role.
“In a fragmented market like this, brokers are critical. They’re the ones helping borrowers understand the trade-offs, navigate tighter lending conditions and get a fairer deal on finance.”
