Investor Loans Hit Two-Year High Despite Rate Hikes

APRA data shows investor lending growing for 10 consecutive months, with balances up $48.4 billion to $800.5 billion despite rising rates and new debt limits.

Investor Lending Has Grown for Ten Straight Months

Australian Broker reports that fresh data from the Australian Prudential Regulation Authority shows investor lending has now grown for ten consecutive months, reaching its highest share of total residential lending in two years. As of March 2026, investment loans account for 32.5% of Australia's $2.46 trillion mortgage market — up from a trough of 32.0% in late 2024.

In dollar terms, investor loan balances have grown by $48.4 billion in just nine months, rising from $752.1 billion in June 2025 to $800.5 billion by March 2026. Investor balances grew 8.5% in the year to March 2026, outpacing the 6.1% growth recorded by owner-occupier lending over the same period. In March alone, investor balances grew at a monthly rate of 0.98% — more than double the 0.37% monthly rate recorded for owner-occupier loans.

What makes this data particularly striking is the context. The RBA has now raised the cash rate twice in 2026 — in February and March — taking it to 4.10%, with a third rise widely expected at its May board meeting. The regulator also activated new debt-to-income limits on 1 February, restricting the share of new mortgages that can be written at a debt-to-income ratio of six times or more. Despite both of those headwinds, investor lending has not only held up but accelerated. In March, investors added $7.8 billion in net new balances across all lenders — the strongest single monthly increase since mid-2022.

Which Lenders Are Leading the Investor Charge

Among individual lenders, Macquarie Bank has the highest investor concentration of any significant lender, with investment loans making up 38.7% of its $173.7 billion book — meaningfully above the major banks. The big four sit between 32.5% (NAB) and 34.9% (CBA). Macquarie's investor book has grown from $15.9 billion in March 2019 to $67.3 billion today — a 322% increase — driven largely by its ability to attract investors through the broker channel and process those loans efficiently.

In absolute terms, CBA holds the largest investor book at $218 billion, followed by Westpac at $172 billion, NAB at $113 billion and ANZ at $109 billion.

The pattern is consistent with what tends to happen in mature rate cycles. Investors are typically drawn back into the market when rental yields improve — which rising rents and softening property values in Sydney and Melbourne have delivered. When investors also believe the rate peak is in sight, that creates additional momentum. With most economists forecasting the cash rate to hold at 4.35% after a May rise, some investors appear to be positioning ahead of what they see as the top of the cycle.

What This Means if You're Considering an Investment Loan

The investor resurgence has real implications for anyone weighing up their first purchase or expanding an existing portfolio.

The first issue is serviceability. With APRA's debt-to-income caps now active, investors borrowing at higher multiples will find their options narrowing at some lenders. Different lenders have different levels of headroom before they approach the 20% cap on high-DTI loans — knowing this distinction is useful if you're borrowing at a higher multiple, because the lender that says no may not be the only option.

The second is rate sensitivity. Investors borrowing on interest-only terms will have felt the full impact of the RBA's 2026 rate hikes immediately on their variable repayments. If you haven't reviewed your investor loan rate since the 2025 rate-cutting cycle, there is a good chance you are not on the most competitive rate available — and the gap between what you're paying and what a new customer would be offered may have widened.

The third factor is rental yield. With property values softening in Sydney and Melbourne, gross rental yields in those cities have been improving. Investors who were previously priced out of neutral or positive-gearing scenarios may find the numbers have shifted enough to be worth revisiting.

If you're working out whether the timing is right, our [borrowing power calculator](/calculators/borrowing-power) can help you understand what's available under current lending conditions. You can also [compare investor home loan options](/home-loans/investor) to see what rates are currently on offer across lenders.

For owner-occupiers, the APRA data is a useful reminder that lenders are competing actively for new loan growth right now. That competition can work in your favour if you're open to [refinancing your home loan](/home-loans/refinance) — particularly if it has been more than 12 months since your last rate review.

For the first time in several years, investor lending is genuinely the growth segment of the Australian mortgage market. The underlying conditions — improving rental yields, a rate cycle that many believe is close to its peak, and lender competition for volume — are all pointing in the same direction. The right preparation before applying makes all the difference.

[Australian Broker](https://www.brokernews.com.au/speciality/investment-loans/investors-are-back--and-rate-rises-arent-stopping-them-289265.aspx) has the full APRA data breakdown.