Residential jumps 16.2% as new loans hit $187.6 billion

The Australian Prudential Regulation Authority (APRA) has released its Quarterly ADI Property Exposures Statistics report for 2025 Q2 (June). APRA’s latest figures show the housing loan books for owner-occupier and investment housing. Agile Market Intelligence has plotted the publicly available APRA data, and calculated the growth rates revealing the accelerating growth of investment housing credit for the past 18 months.

Key stats you need to know

Total residential loan books are at $2.39 trillion, up 5.7% year-on-year.
New loans funded rose to $187.6 billion, up 16.2% year-on-year.
Investment loans share of new lending is 34.1%, down only 0.4 percentage points from last year.

Housing loan momentum continues

New loans funded reached $187.6 billion for the quarter, representing a robust 16.2% year-on-year increase.
Owner-occupied loans maintained their dominance at 63.6% of new originations, virtually unchanged from 63.3% a year earlier.
Investment lending accounted for 34.1% of new loans, down marginally from 34.5% in June 2024.

New loan activity surged 16.2% year-on-year, far outpacing the 5.7% growth in total outstanding credit. This divergence reflects a pick-up in market activity, including refinancing and new purchases, even as the overall loan book grows more modestly. The investment segment has shown particular resilience, maintaining the above 33% share since 2024 Q2, the highest ratio it’s been since APRA’s quarterly property exposures reporting began.

"The resilience in investment lending despite the higher rate environment shows there's still strong underlying demand for property investment. Investors are adapting to the new cost of capital and finding opportunities where the numbers still stack up," said Michael Johnson, Director of Agile Market Intelligence.

Risk management stays disciplined

High loan-to-volume (LVR) lending (>80%) dropped to 30.4% of new loans, down 1.47 percentage points year-on-year.
High debt-to-income (DTI) lending rose to 5.5% from 5.0% last year.

Banks have maintained their conservative approach to lending standards throughout the rate hiking cycle. The continued decline in high LVR lending demonstrates ongoing prudential discipline, while the marginal increase in high DTI lending remains well within the bounds of borrowing DTI in the past two years.

"We're seeing prudential discipline in action. Banks are maintaining conservative LVR settings while allowing modest flexibility in DTI lending. It's a balanced approach that keeps credit flowing without compromising quality," Michael Johnson said.

Source: APRA Quarterly Property Exposures Statistics highlights

Commercial property surges ahead

Commercial property exposures (loan books) jumped 9.4% year-on-year to $464.1 billion.
Exposure limits increased to $498.9 billion, up 9.0% from June 2024.

The commercial property sector continues to attract strong bank appetite as shown by the year-on-year growth. This suggests sustained confidence in commercial real estate, despite broader economic headwinds, as banks expand both their actual lending and risk appetite in this segment.

"The 9.4% growth in commercial property lending tells us banks see opportunity in this sector. They're not just maintaining exposure - they're actively growing it and increasing their risk appetite limits. That's a strong confidence signal," Michael Johnson noted.

Source: APRA Quarterly Property Exposures Statistics highlights

About the research

Statistics in this article were drawn by Agile Market Intelligence from APRA’s quarterly ADI property exposure statistics (June 2025). The dataset covers property loans across authorised deposit-taking institutions, and APRA’s highlights calculate year-on-year changes for June 2025.

Agile Market Intelligence also conducts Broker Pulse, a monthly survey of residential and commercial mortgage lenders. It is a community-driven knowledge base of lender performance that offers transparency to the market by surfacing these collective insights from the broker community. This empowers brokers to make informed decisions and enables lenders to benchmark and improve performance.

Participating brokers receive access to a bird’s-eye view of the lender benchmarking data each month. To sign up or for more information visit https://www.brokerpulse.com.au/.

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