Australian property investor lending drops record pace amid falling home loans

New lending to property investors dropped by nearly a third in the September quarter, marking the biggest decline in official records stretching back to 2002. Officials and analysts noted that the pullback is driven by a combination of rising borrowing costs, falling property values, and new tax reforms affecting capital gains and negative gearing. Meanwhile, the Commonwealth Bank reported that the share of its mortgage customers falling behind on repayments climbed to a 12-year high, reaching 0.8%. While analysts noted that the rising arrears are starting from a low historical base, the trend highlights mounting financial pressures on borrowers across the banking sector.