Finally there is some light in the battle to make housing affordable again. The new Budget rules have quelled residential investor animal spirits that were chasing capital gains and tax advantages

The Australian Bureau of Statistics said the number of new home loans in Q2-2026 fell -5.4% and their value fell -5.2% following the three RBA rate increases in the year, and their May Budget announcement of changes to negative gearing and capital gains tax rules. The biggest pullback was by investors who were rorting the system under the old rules. This has had the salutary effect of capping the unbridled rise in house prices and giving them a chance to make housing affordable again. 

But they will need stamina to keep these rules in place for an extended period because the real estate and mortgage broking lobby is working hard to undermine them. At least some bankers see the pause as a necessary handbrake, one calling it a cathartic moment for the economy.

The following is the ABS media release of the data.

The number of new home loans fell 5.4 per cent to 134,225 in June quarter 2026, according to data released today by the Australian Bureau of Statistics (ABS).

Dr Mish Tan, ABS head of finance statistics, said: 'Lending fell across all borrower types this quarter and returned to similar levels to this time last year.'

'Lending conditions continued to change in the June quarter, with the Reserve Bank of Australia increasing the cash rate for the third time in 2026. Changes to negative gearing and capital gains tax were also announced in the federal budget in May, to commence in July 2027.'

The value of total new home loans fell 5.2 per cent (-$5.4 billion) this quarter, after a 3.4 per cent fall in the previous quarter. 

'While the value of home loans increased 6.8 per cent since June quarter 2025, this was lower than the 19.1 per cent annual growth recorded in the March quarter,' Dr Tan said.

Investor loans drive the fall in new home loans

The number of investor loans fell 8.6 per cent (-4,966 loans) after a 4.7 per cent fall in the March quarter. 

'The fall in investor loans in the June quarter was the largest fall since September quarter 2022,' Dr Tan said.

'Annually, growth in investor loans slowed from 19.4 per cent in the March quarter to 2.8 per cent this quarter.'

New South Wales (-15.5 per cent), Victoria (-14.2 per cent) and Queensland (-10.1 per cent) led the fall in investor loans. Meanwhile, rises were recorded in the Northern Territory (12.8 per cent), the Australian Capital Territory (8.7 per cent) and Tasmania (5.3 percent). 

Owner occupier loans fall through the year

The number of new owner-occupier loans fell 3.3 per cent (-2,745 loans) in the June quarter, following a 3.8 per cent fall in the previous quarter.

'Lending to owner occupiers was 1.6 per cent lower than a year ago, marking the first annual fall since September quarter 2023,' Dr Tan said.

Owner occupier first home buyer loans also fell 2.9 per cent (-891 loans), following a 3.6 per cent fall in the March quarter. In annual terms, the number of new first home buyer loans was unchanged.

Image:

Image: