More than four in five brokers surveyed by Macquarie Equity Research have recorded a fall in investor mortgage inquiries since the federal budget.
Macquarie’s 2026 Mortgage Broker Survey found that 84 per cent of brokers had seen investor mortgage inquiries decline after the budget, including 65 per cent who reported a significant reduction.
The retrenchment was especially apparent in established housing, with 83 per cent of respondents reporting fewer investor loan inquiries for established dwellings.
Despite the reforms being designed to steer investor capital towards new housing supply, the survey revealed that the immediate outcome had been hesitation rather than a clear migration into newly constructed dwellings.
A total of 44 per cent of brokers said investor inquiries for new dwellings had fallen, while 36 per cent said they had remained unchanged. Only 10 per cent reported a modest increase in those inquiries.
“Despite the property market appearing conducive for owner-occupier upgraders, first home buyers (FHB), or new-builds, borrowers appear to be waiting for the market to settle down (or understand the changes) before participating again,” the report read.
Investors reassess property strategies
Macquarie’s survey indicated that borrowers are considering several responses, with the most common being to delay an investment-property purchase, cited by 72 per cent of borrowers.
A further 51 per cent were looking to extend their existing investment property, which the research linked to the grandfathered treatment of properties acquired before the budget changes.
However, the survey also found 35 per cent were considering selling an investment property.
This is consistent with the broker-level evidence, with 30 per cent of brokers stating they had seen a rise in inquiries from investors contemplating a sale.
Other options included directing more money into superannuation, selected by 28 per cent of borrowers, and shifting from established homes to newly constructed property, selected by 21 per cent.
The report also found only 8–11 per cent of borrowers were either planning to do nothing or were unaware of the changes, indicating that most affected customers were actively reassessing their position.
Owner-occupier demand also softens
The survey found that the pullback was not confined to investors, with 38 per cent of surveyed brokers having experienced a material decline in owner-occupier inquiries.
One surveyed broker described a shift away from conventional investment-property purchases as clients re-evaluated their options under the new tax environment.
“We are seeing a shift towards owner-occupier loans as the tax reforms bite investors. Clients are seeking to add value to their homes, then flip to make a profit and lower tax outcomes, rather than investment property purchases or playing in the stock market,” the broker said.
Another broker reported a changing mix of finance demand, with commercial activity gaining ground even as some residential investor activity weakened.
“Shift to business lending, commercial SMSF lending. Some brokers are busy and growing (e.g. myself), while others have reported stagnation/decline. More investors in Victoria dropped out, and SMSF lending for residential stopped, but commercial inquiries increased,” the broker said.
A third broker said inquiry patterns were also reflecting demand from upgraders who wanted to purchase before completing a sale.
“Not really an anomaly, but definitely more interest in bridging products that are competitive and easy for consumers to understand, especially for upsizers looking to buy before selling,” the broker noted.
“Seeing a lot more sell and upgrade inquiries, as well as asking about bridging loans.”
Family support rises
The survey also revealed the continuing role of family wealth in housing transactions, particularly among first-home buyers (FHB).
On average, brokers said 15 per cent of their borrowers had received cash gift or loan support from family members, slightly higher than in 2025, while 11 per cent had assistance from a family guarantor.
Among borrowers receiving a cash gift or loan, the average contribution rose to $71,000 from $64,000 a year earlier.
FHBs represented 23 per cent of purchases, or 10 per cent of total flows including refinances.
Average family support in NSW reached $92,000, about 50 per cent above other states.
Macquarie attributed this to higher property prices, requiring larger contributions, and to the capacity of some families to draw on wealth created through earlier housing-price growth.
Western Australia also recorded a notable increase in average support, from $33,000 to $58,000, which Macquarie said reflected the stronger local market and the greater support required by buyers.
[Related: Borrowing power becomes pivotal in lender choice]
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