New Cotality data shows that annual credit growth for investor home lending is tracking at the fastest rate since 2015, which should raise alarm bells for APRA, the national regulator
In 2025, the Greens called on APRA to intervene in the housing crisis by cooling investor lending. Instead, APRA introduced measures to stop high risk loans from 1 February 2026, which the Greens say have failed to address the underlying surge in investor demand.
Independent economist Saul Eslake told media that if APRA had taken stronger action then the RBA may not have had to increase interest rates.
With investor lending out of control, house prices soaring through the roof and further rate hikes on the horizon, the Greens say it’s time for APRA to level the playing field to give first-home buyers a chance.
Greens spokesperson for finance, housing and homelessness Senator Barbara Pocock:
“If only APRA had intervened when the Greens had asked them to. Instead, the housing crisis continues to spiral out of control while Labor refuses to act.
“The system is stacked against first-home buyers. Investors already have a $100,000 advantage when they bid at auctions.
“It shouldn’t be easier for wealthy property investors to buy their 5th, 10th, or 20th house.
“The more houses that property investors buy, the less houses there are available for first-home buyers.
“Australia’s inflation problem is being driven largely by rising house prices, caused by Labor’s failed housing policies.
“Labor’s 5% deposit scheme and $181 billion tax handouts for property hoarders are surging investor demand and spiking house prices, which is the biggest driver of inflation.
“This housing crisis is heading toward a point of no return. We urgently need to cool the overheated investor credit market.
“APRA must intervene to even out the playing field to give first-home buyers a chance. It must use all the tools in its tool box to rein in investor lending that is exacerbating the housing affordability crisis.
“APRA has used its toolkit in the past to cool investor lending and it led to the greatest stabilisation of house prices in 30 years, they need to take that decisive action again.”