Investor lending is staging a comeback that the Reserve Bank's rate hiking cycle has so far failed to halt, with fresh APRA data showing the investor share of Australia's $2.46 trillion mortgage market rising for ten consecutive months to reach its highest level in two years.
Investor mortgages now account for 32.5 per cent of all residential lending on the books of authorised deposit-taking institutions as at March 2026, up from a trough of 32.0 per cent in late 2024 and rising in nine of the ten months since June last year. In dollar terms, investor balances have grown by $48.4 billion in just nine months — from $752.1 billion in June 2025 to $800.5 billion in March 2026.
That growth is outpacing the owner-occupier segment by a widening margin. Investor balances grew 8.5 per cent in the year to March 2026, compared to 6.1 per cent for owner-occupiers. In March alone, investor balances grew at a monthly rate of 0.98 per cent — more than double the 0.37 per cent recorded for owner-occupier loans.
The data is striking for its timing. The RBA has now lifted the cash rate twice this year — in February and March — taking it to 4.1 per cent, with a third rise widely expected at next week's board meeting. APRA also activated new debt-to-income limits on 1 February, restricting the share of new mortgages that can be written at a DTI ratio of six times or more.
Despite both of those headwinds, investor lending has not only held up but accelerated. In March, investors added $7.8 billion in net new balances across all lenders — the strongest single monthly increase recorded in the data since mid-2022.
The pattern echoes what has happened in previous rate cycles. Investors tend to be drawn back into the market when rental yields improve — which rising rents and modestly lower prices in Sydney and Melbourne have delivered — and when they believe the rate peak is in sight. With most economists forecasting the cash rate to hold at 4.35 per cent after a May rise, some investors may be positioning ahead of what they see as the top of the cycle.
Among individual lenders, Macquarie Bank has the highest investor concentration of any significant lender, with investment loans making up 38.7 per cent of its $173.7 billion book — meaningfully above the big four banks, which sit between 32.5 per cent (NAB) and 34.9 per cent (CBA).
That mix is a deliberate strategic choice that has served Macquarie well. The bank has grown its investor book from $15.9 billion in March 2019 to $67.3 billion today — a 322 per cent increase — while also growing its owner-occupier portfolio strongly. Its ability to attract investors through the broker channel, and to process those loans efficiently, has been central to its market share surge.
The investor resurgence has direct implications for how brokers manage their pipelines and conversations with clients.
The first is serviceability. With the DTI caps now in force, investors borrowing at higher multiples will find their options narrowing at some lenders. Knowing which lenders have more headroom — and which are approaching their 20 per cent DTI limit — will become an increasingly useful differentiator for brokers operating in this space.
The second is the rate sensitivity of investor clients. Investors borrowing on interest-only terms will have felt the full impact of the RBA's 2026 hikes immediately on their variable rate. Brokers who proactively review investor clients' rate positions — particularly those who have not refinanced since the 2025 rate-cutting cycle — are well placed to add value now.
The third is rental yield calculations. With property values softening in Sydney and Melbourne, gross rental yields in those cities have been improving. Investors who were previously priced out of positive-gearing scenarios may find the numbers have shifted, changing the nature of the lending conversations brokers can have.
For the first time in several years, investor lending is genuinely the growth segment of the Australian mortgage market. Brokers who are equipped for it will benefit.
