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The growth in investor lending at Australian banks is outpacing that of owner-occupier lending, according to new figures.
The latest release of the Monthly Authorised Deposit-taking Institution Statistics (MADIS) from the Australian Prudential Regulation Authority (APRA) has revealed that investor lending is driving a significant portion of the recent growth in mortgage loan books, particularly among Australia’s non-major banks.
According to APRA data, investor loan books across all banks grew by 0.52 per cent to $741.40 billion between March and April 2025, outpacing the 0.46 per cent growth in owner-occupier loans (which rose to $1.57 trillion).
The Commonwealth Bank of Australia (CBA) remains the largest investor lender, with $198.96 billion in outstanding investment loans at the end of April, up 0.62 per cent from March and approximately 8.26 per cent year on year.
It also holds $386.99 billion in owner-occupier loans, making it the largest home loan lender overall, with a total mortgage book of $585.95 billion (up 6.17 per cent on April 2024).
Australia and New Zealand Bank (ANZ) also recorded strong results, with investor loans up 11.8 per cent year on year to $104.42 billion and owner-occupier lending reaching $209.89 billion. Its total book now sits at $314.31 billion, reflecting a 7.81 per cent annual increase, the highest among the majors.
National Australia Bank (NAB) had the smallest year-on-year increase among the majors for investor lending. The APRA data showed that it had an investor loan book of $110.91 billion by the end of April 2025, up just 1.13 per cent from $109.67 billion a year earlier.
However, it had greater growth performance in owner-occupier lending, rising by just under 5 per cent over the year to April 2025, which accounted for $219.56 billion of its $330.47 billion mortgage book (which was up 3.55 per cent on April 2024).
Meanwhile, Westpac’s loan book increased to $484.12 billion in April 2025, including $321.14 billion in owner-occupier lending and $162.98 billion in investor loans. While its investor book was up 2.27 per cent over the year, it had the most modest monthly growth of the majors, lifting just 0.20 per cent month on month.
While the big four banks continue to dominate in total volume, the non-major banks are seeing the fastest rates of growth, particularly in the investor segment.
Macquarie remains one of the fastest-growing mortgage lenders in the country. It increased its total book to $138.95 billion in April 2025 – up 18.35 per cent on April 2024 – comprising $86.71 billion in owner-occupier loans and $52.24 billion in investor loans. Its owner-occupier lending has surged 20.87 per cent year on year, the highest growth rate across both categories, while its investor book was up by approximately 15.92 per cent over the year to April 2025.
ING also posted strong growth results. Its mortgage portfolio reached $64.58 billion in April, up 9.3 per cent from the same time last year. This included $52.05 billion in owner-occupier lending (up 5.94 per cent) and $12.53 billion in investor loans (up 33.2 per cent), making ING one of the fastest-growing banks for investor lending by percentage.
The upswing in investor lending reflects a broader shift in buyer behaviour. Recent data from the Australian Bureau of Statistics has revealed that the value of new investor housing loan commitments surged 16 per cent year on year in the March 2025 quarter to $32.4 billion, remaining just below the record high in March 2022.
This trend is likely being fuelled by the recent interest rate cuts and growing interest in ‘rentvesting’ amid affordability constraints.
Indeed, recent reports showed that first home buyers are increasingly choosing to invest in more affordable areas while continuing to rent in their preferred locations. ABS figures showed that there was a 12 per cent rise in first home buyer investor loan commitments in 2024, outpacing the 5 per cent growth in owner-occupier first home buyer loans.
[Related: New home lending grows annually, investment loans near record]
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