Interest-only loans hit eight-year high fuelled by property investors
Interest-only loans in Australia have reached an eight-year high, driven primarily by increased activity from property investors. This trend has also seen some first home buyers opting for these loans to enter the market. However, upcoming changes in the federal budget may reduce investor activity and interest-only lending in the future.
- ▪Interest-only loans now account for over 21% of total lending commitments in Australia.
- ▪The share of interest-only loans has increased from 17.5% six years ago, reflecting a surge in investor activity.
- ▪The 2026 federal budget plans to curb negative gearing, which may impact future investor interest in property.
Opening excerpt (first ~120 words) tap to expand
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Sydney Morning Herald.