Westpac Bank Reports 20 Percent Drop in Mortgage Applications After Budget
Westpac reported its third-quarter results on Aug. 10, which included impacts of changes to capital gains tax and negative gearing outlined in the May budget.
Home lending in Australia is moderating due to cost-of-living pressures and high interest rates. Westpac projects housing credit growth to slow from 6.8% this financial year to 4.7% in fiscal 2027. A notable decrease in investor loan applications is also anticipated.
- Home lending is moderating in Australia.
- Consumers are facing cost-of-living pressures and high interest rates.
- Westpac expects housing credit growth to moderate to 4.7% in fiscal 2027.
- Investor loan applications are expected to fall to 4.5% next year from 9.1% this year.
- An undersupply of housing and population growth may partially offset higher rates and policy changes.
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