NAB home loan applications plunge 15 per cent as all four Australian big banks record double-digit falls
All four of Australia’s big banks have now recorded the same trend in home loan applications in the past several months.
All four of Australia’s big banks have now recorded double-digit falls in home loan applications, as NAB posts its quarterly results.
NAB delivered its third-quarter update on Monday, showing the bank’s mortgage book value swelled but home loan applications fell sharply, in line with the other three big banks.
New loans to owner-occupiers were down 14 per cent, and investor borrowing was down 17 per cent across the three months.
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By continuing you agree to our Terms and Privacy Policy.NAB posted a 2 per cent lift in cash earnings for the quarter to $1.83bn off the back of high interest rates.
“The combined impacts of the Middle East conflict, higher domestic interest rates and recent tax changes in the federal budget are creating challenges and uncertainties for our customers,” NAB chief executive Andrew Irvine said.
“While the ratio of non-performing loans declined over 3Q26, watch loans were higher, reflecting current and potential stress impacting performing customers.
“Business credit growth has remained robust at this stage, but the Australian home lending market softened in 3Q26 with our applications down 15 per cent compared with 2Q26.”
The bank’s quarterly update shows it is expecting negative growth in investor home loans this coming financial year.
NAB’s projections have investor home loan applications plummeting to -1.4 per cent next year, while owner-occupier loans are predicted to soften before a smaller uptick to 4.5 per cent growth.
The bank forecasts this retreat from property investors despite NAB projecting interest rates will be cut to 3.6 per cent by the end of the 2027 calendar year.
In another sign there are plenty of advantages for property investors, NAB also notes that rents are growing across the country despite house prices falling.
Pulling from Cotality and Australian Bureau of Statistics data, NAB determines national house price falls are being led by Sydney and Melbourne, but “rents growth remains elevated”, “dwelling completions remain low relative to demand”, and “rental vacancy rates remain low”.
Amid high interest rates, the number of NAB’s loans that have slipped onto a “watch” list as a sign of “current and potential stress” rose, though that figure remained below the peak of early 2025. Credit impairment charges also fell for the quarter.
NAB’s 15 per cent dip in mortgage applications compared with a 20 per cent fall at Westpac, matched Commonwealth Bank’s retreat, and was higher than ANZ’s 12 per cent dip.
NAB is however the largest lender to businesses, and the results show business lending rose 2 per cent, while “business credit growth has remained robust at this stage”.
More to come...
Originally published as NAB posts 15pc fall in home loan applications for the quarter
