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The latest state-by-state edition of Money.com.au’s Mortgage Insights Report has revealed a spike in investor loans issued nationwide of 22 per cent over the past year with 192,843 loans issued.
According to the report, this was more than three times the growth rate of owner-occupier loans, which increased 6 per cent to 322,273 over the same period.
Should these growth trends continue, Money.com.au said that investor loans could reach around 234,000 nationally in 2025. Meanwhile, owner-occupier loans are projected to hit approximately 341,00 at this time.
The report found that investor loan growth in Victoria has caught up to owner-occupier growth for the first time in two years, rising by 10 per cent annually.
While investor loans are gaining ground in Victoria, its loan market is still largely dominated by owner-occupier loans for existing properties.
Money.com.au’s property expert Mansour Soltani said that high entry and holding costs “are pushing homebuyers away”.
“Victoria is the most heavily taxed state in the country when it comes to property,” he said.
“It has the highest stamp duty of all states, and land taxes on investment properties and second homes are among the most expensive.
“These upfront and ongoing costs are pushing many homebuyers and investors toward more affordable markets like Queensland and Western Australia.”
For Queensland, investor loans accounted for 40 per cent of all new loans in the Sunshine State, almost doubling the 22 per cent share recorded in 2020 and remaining the second-largest state for investor loans by market share.
Leading the nation in investor loan growth was Western Australia with a growth rate of 35 per cent year on year, with investor lending now 58 per cent higher than the previous national loan cycle peak, the report showed.
Meanwhile, investor loan numbers in NSW hit a record high over 2024, which held a loan share of 41.7 per cent, up from 29.6 per cent by the end of 2020. According to the report, this is the highest investor loan share in NSW in five years of available data.
Soltani said that NSW investors are “increasingly favouring new builds in regional corridors”.
“We’re seeing more housing density in regional areas outside Sydney, where new estates are offering strong opportunities for investors who want to avoid overcapitalising,” Soltani said.
“At the same time, a significant number of first-home buyers are also opting for these developments as part of their rentvesting strategy.”
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