Australia’s first home buyers are still taking out loans as property investors step back, data shows

New data from the lender Loan Market shows that first home buyers are the only group taking out more loans than they did in June. Their requests dropped 3% in July, then rose 10% in early August. At the same time, investor loans fell much more sharply, while other owner-occupiers stayed about the same. This came after a slowdown in home buying across the country.

Buying a first home in Australia has become very hard because prices and interest rates keep rising, and rates went up three times. Later, the government changed the rules and limits for most investors, ending what is called negative gearing. Prime Minister Albanese said that was meant to level the playing field for first home buyers. The newest data suggests that reform may be helping, as new buyers feel luck is turning their way while investors hold back.

It shows if a tax change truly helps new buyers over investors. That outcome will shape the housing debate and people's hopes of owning a home.