Australian property investor lending drops at record rate as defaults rise

New lending to Australian property investors fell at its fastest pace on record during the three months to September 2026, the Guardian reported. Landlords are adjusting to higher taxes alongside falling property values and increasing interest rates. [1]

The Commonwealth Bank of Australia, the largest lender in the country, reported that the proportion of its customers struggling to make mortgage repayments has risen to a 12-year high. The figures coincided with Treasurer Jim Chalmers defending his budget reforms once again following the release of the quarterly trading updates, according to the Guardian. [1]

Residential property dominates the Australian real estate market, forming a central component of the national economy where housing acts as the primary store of household wealth. Demand for housing in Australia is largely driven by population growth, which remains rapid by international standards. [2]