Investor mortgage boom crowds out first home buyers

Thursday, 2 December 2021

The Australian mortgage market fell again in October, according to new data released today by the Australian Bureau of Statistics (ABS).

The total value of new mortgage commitments fell by a seasonally adjusted 2.5% in October 2021 to be up 32.2% year-on-year:

As shown above, owner-occupiers had driven mortgage demand this cycle, whereas investor demand remains just below its 2015 peak.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.