"We can say that it’s a pause, absolutely. It will pick up," Naveen Ahluwalia, chief executive at the Mortgage & Finance Association of Australia, told news.com.au. Households and property investors have slowed mortgage applications as they digest federal budget changes and recent legislation, even as many continue to seek broker advice about serviceability and access to government schemes. The MFAA says brokers report high demand for consultations but a softer conversion into formal lending applications, with activity concentrated around advice rather than new loan lodgements. The association expects lending demand to recover once policy and legislative certainty is absorbed.
"What our members are telling us is that investors are actually delaying decisions as they look to understand recent budget implications," Ms Ahluwalia said.
Brokers on the ground offer a mixed read. Martin Eftimoski, director of Deyon and a Sydney-based broker who specialises in first home buyers, says his office remains "very busy" and he hasn't observed a clear drop in demand for property.
But market data tell a different story. Recent data show falling home values and weaker auction clearance rates, and the MFAA points to investor caution after a string of government policy announcements, producing temporary uncertainty.
Brokers told the MFAA they're fielding large volumes of questions about borrowers' serviceability, changes to taxation or support measures, and how to access state and federal housing schemes. That has pushed client contact toward advice rather than immediate loan lodgement.
The MFAA linked its observations to anecdotal reports from brokers and to market indicators, noting the slump in applications aligns with what mortgage lenders such as Aussie Home Loans reported as "sobering figures". The association frames the pattern as confidence-driven rather than the start of a structural decline in the housing market.
Some commentators see the holding pattern as a short buyer window before limited supply pushes prices higher, while others argue the long run of rising prices may be losing momentum and the market could move sideways.
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The MFAA expects demand to recover as investors and buyers absorb the new rules. "It will pick up," Naveen Ahluwalia told news.com.au. Originally reported by news.com.au.
This article was created with AI assistance.
