Fresh APRA data has revealed that mortgage-book growth slowed sharply across Australia’s leading lenders in July, with NAB’s home loan book edging lower.
Australia’s 10 largest authorised deposit-taking institutions (ADIs) recorded a marked slowdown in mortgage-book growth in July, with the National Australia Bank’s (NAB) portfolio edging into decline.
APRA’s monthly ADI statistics showed that the 10 lenders’ combined housing-loan books increased by about $6 billion during July, and while still positive, the outcome was heavily skewed by Macquarie Bank’s $2.22 billion expansion.
Without Macquarie, the group’s aggregate growth was far more subdued, with declines at NAB, Bendigo and Adelaide Bank, Suncorp Bank, Bank of Queensland (BOQ), and HSBC Bank Australia.
The shift follows a much stronger June for the largest banks, with the Commonwealth Bank of Australia (CBA), Westpac, NAB, Australia and New Zealand Bank (ANZ), and Macquarie alone collectively adding about $16 billion to their mortgage books in the month prior.
Majors lose speed
The CBA retained its position as the country’s largest mortgage lender, with a total housing portfolio of $637.5 billion at the end of July; however, the bank added $1.20 billion during the month (a rise of 0.31 per cent), compared with a $5 billion increase in June.
Owner-occupied loans were the main source of CBA’s July growth, which rose $1.54 billion to $414.9 billion, while investor balances increased by a comparatively modest $420 million to $222.5 billion (down from $1.54 billion in June).
Meanwhile, Westpac’s $518 billion mortgage book was almost flat in July, increasing by just $340 million, or 0.07 per cent, compared with a $2.78 billion expansion in June.
Westpac’s owner-occupied lending rose $770 million, or 0.23 per cent, to $342.6 billion, but its investor portfolio fell $430 million, or 0.24 per cent, to $175.4 billion, reversing a $1.32 billion gain in June.
NAB’s mortgage book slipped by $50 million, or 0.01 per cent, to $351.5 billion, following a $1.77 billion rise in June.
Its owner-occupied portfolio decreased by $120 million to $236.2 billion, while investor balances dropped $70 million to $115.3 billion.
ANZ’s portfolio continued to expand, rising $1.04 billion, or 0.31 per cent, to $331.9 billion, yet its growth was about one-third of June’s $3.12 billion increase.
The bank’s owner-occupied balances rose $580 million to $218.3 billion, while investor lending increased $600 million to $113.6 billion.
On a percentage basis, investor growth of 0.41 per cent outpaced the 0.26 per cent increase in the owner-occupied segment, making ANZ an exception to the broader softening seen in several competitors’ investor books.
Macquarie breaks from the pack
Macquarie once again stood apart from the major and regional banks, with its $185.9 billion mortgage book growing $2.22 billion in July or 1.21 per cent.
The lender added $1.61 billion to its owner-occupied portfolio, lifting that book to $113.9 billion, while investor lending rose $600 million to $72 billion.
However, its growth rate moderated from 1.88 per cent in June, when it added $3.39 billion.
In a month where CBA, Westpac, NAB, and ANZ all expanded more slowly than in June, Macquarie accounted for more than half of the named lenders’ combined net growth.
ING also continued to expand, albeit at a more measured pace.
Its total housing portfolio increased $330 million, or 0.45 per cent, to $74.5 billion, while owner-occupied lending rose $240 million to $55.6 billion, and investor balances increased $90 million to $18.8 billion.
Smaller books contract
The July pullback was not confined to the major banks, with several smaller lenders posting outright declines.
BOQ extended its prolonged period of mortgage decline, with its home loan book falling by $440 million, or 0.87 per cent, to $50.7 billion – the largest percentage contraction among the top 10 lenders.
Meanwhile, HSBC’s portfolio dropped $200 million, or 0.56 per cent, to $34.9 billion.
HSBC agreed in late July to sell its approximately $36 billion Australian home and personal loan portfolio to Blackstone, with completion expected in the first half of 2027, and it has been reported by brokers that the major banks are fighting hard for the bank’s mortgages.
Bendigo and Adelaide Bank’s housing book eased $30 million, or 0.05 per cent, to $64.5 billion.
Its owner-occupied book fell $200 million to $39.6 billion, outweighing a very small increase in investor balances.
Suncorp Bank’s portfolio declined by $280 million, or 0.49 per cent, to $56.7 billion, with both segments contracting.
The continued decline at Suncorp comes as ANZ progressively integrates the business acquired in 2024, with the major bank’s June-quarter update revealing that Suncorp’s mortgage book had already declined by 1 per cent, from $62 billion to $61 billion.
Cooling demand reshapes lending
The July slowdown arrives after three consecutive Reserve Bank cash-rate rises earlier in the year and the federal budget’s changes to investor property tax settings, which have significantly cooled mortgage demand.
Major-bank application data has reinforced the steep fall in mortgage demand, with ANZ reporting that underlying mortgage-application values fell 12 per cent between the 12 May budget and late July, with Westpac, CBA, and NAB also reporting softer post-budget application flows.
[Related: CBA and Macquarie lead June mortgage-book gains]
Want to see more stories from trusted news sources?
Make The Adviser a preferred news source on Google.
Click here to add The Adviser as a preferred news source.
