The months of strong growth in lending took a turn in March, according to data released this month by the Australian Bureau of Statistics (ABS).
The figures show that the number of new home loans fell 6.2 per cent to 139,794 in the March quarter 2026.
ABS head of finance statistics Dr Mish Tan observed that falls were recorded across all borrower types this quarter, following strong growth throughout 2025 and cash rate rises in February and March.
“Despite this quarter’s fall, lending activity remains at high levels, with total new home loans 8.6 per cent higher than a year ago”, Tan said.
The value of total new loans also fell 3.8 per cent ($4.0 billion) to $103.0 billion in the March quarter, but was 18.5 per cent higher through the year.
“Annual growth in the value of new lending has continued to outpace growth in the number of loans, a trend we have seen since December quarter 2023”, Dr Tan said.
“The average home loan size is now 9 per cent higher than a year ago at $724,415. This is consistent with rising property prices, with the strongest growth in Western Australia, Queensland and South Australia.”
Following a strong rise in the December quarter, loans to first home buyer owner-occupiers fell 4.3 per cent in March quarter 2026. Lending to first home buyers was nevertheless 5 per cent higher through the year.
All states and territories fell except the Australian Capital Territory, which rose 6.5 per cent. The largest falls were recorded in Victoria (down 4.5 per cent), Queensland (5.8 per cent) and New South Wales (4.1 per cent).
The value of first home buyer loans also fell this quarter, down 6.7 per cent ($1.3 billion) to $17.9 billion. This was 17.9 per cent higher than a year ago.
The average loan size rose 1.1 per cent ($6,425) to $614,048 in the March quarter. This followed an 8.5 per cent ($47,375) rise in the previous quarter when the Australian Government 5% Deposit Scheme was expanded.