# Australian property investors flee as lending collapses

> New lending to property investors fell at record pace in the September quarter as tax changes and rising rates drive landlords from the market, while mortgage arrears hit a twelve-year high.
- Title: Australian property investors flee as lending collapses
- Summary: New lending to property investors fell at record pace in the September quarter as tax changes and rising rates drive landlords from the market, while…
- Keywords: commonwealth bank, property investors, mortgage arrears, lending, tax changes, interest rates, jim chalmers, andrew bragg, australian bureau of statistics, the Guardian
- Source: the Guardian — https://theguardian.com/australia-news/2026/nov/11/property-investor-lending-rates-fall-cba-mortgage-repayments
- Published: 2026-11-11T07:02:15+00:00
- Read time: 1 min
- Topics: commonwealth bank, property investors, mortgage arrears, lending, tax changes, interest rates, jim chalmers, andrew bragg, australian bureau of statistics, news, world
## Investor lending collapses at record pace
New lending to property investors fell at its fastest pace on record through the three months to September, as landlords adjust to higher taxes and rising interest rates.
## The scale of the investor exodus
The value of new investor loans plunged by nearly a third in the September quarter, the biggest drop in official records stretching back to two thousand two.
## CBA mortgage arrears hit twelve-year high
Commonwealth Bank reported that the share of borrowers ninety days or more behind on repayments lifted from zero point seventy-three percent to zero point eight percent of total lending.
## Last time arrears were this high
The last time Commonwealth Bank's arrears rates were higher was in two thousand fourteen, according to previous trading updates.
## Tax changes and price expectations drive exodus
Mish Tan, head of finance statistics at the Australian Bureau of Statistics, said investor activity is influenced by tax changes and expectations of lower house prices, beyond rising borrowing costs.

> suggests that investor activity is being influenced by factors beyond increasing borrowing costs, including the potential impacts of tax changes and expectations of lower house prices
## Chalmers defends tax reforms as beneficial
Treasurer Jim Chalmers said the government's tax reforms will help first home buyers compete less with investors for housing stock, and benefits will play out over years, not months.

> Because of our reforms, first home buyers will have to compete less with established investors for limited existing housing stock
## Coalition promises to repeal investor tax changes
Andrew Bragg, shadow housing minister, said Labor's higher housing taxes are discouraging investment when Australia desperately needs more homes, and the taxes should be repealed.

> Labor's higher housing taxes are discouraging investment when Australia desperately needs more homes
## Key takeaway

New lending to property investors fell at its fastest pace on record through September as tax changes and rising rates drive landlords from the market, while Commonwealth Bank's mortgage arrears hit a twelve-year high.