🏠 Australia lending stays resilient as ANZ lifts home-loan rates

Australia’s housing finance market is facing a fresh affordability hit after ANZ said it will raise variable rates on its Australian home loans by 0.25 percentage points from 15 May, even as the Reserve Bank of Australia says housing credit growth remained strong in March. The two moves point to a market where demand is still active, but borrowing costs are moving higher again.

The Reserve Bank’s May 2026 Statement on Monetary Policy said new housing lending moderated, yet housing credit growth stayed firm last month. It also said first-home buyer loan commitments remained about 11% above September 2025 levels, helped by the government’s 5% deposit scheme. Reuters reported ANZ’s rate increase on 8 May.

Why it matters for investors

For residential investors, the combination of strong credit growth and higher lender pricing suggests financing conditions are tightening unevenly rather than collapsing. That can keep transaction activity supported in the near term, while also putting pressure on buyer affordability, especially in segments reliant on variable-rate debt and first-time purchasers. The RBA data also indicates that policy restraint has not yet fully cooled credit demand, which could help underpin prices in supply-constrained markets.

➡️ Housing credit growth remained strong in March despite tighter policy settings.

➡️ First-home buyer commitments were still about 11% above September 2025 levels.

The signal for Australian housing is clear: credit remains available, but the cost of that credit is rising again.