Australian Investor Mortgage Applications Plummet Amid Budget Reforms

The Australian housing finance market is experiencing its steepest pullback in years, according to Loan Market Group's July report. Investor mortgage applications have fallen sharply since the federal Budget overhauled negative gearing and capital gains tax settings.

Total home loan lodgements by number are down 26% nationally since early February, coinciding with three Reserve Bank of Australia (RBA) cash rate hikes and the government's May budget changes.

Investor lodgements have borne the brunt of the slowdown, falling 35% by value and 31% by number over the same period, the sharpest decline of any borrower category tracked in the report.