Investor Enquiries Collapse 56% In Just 30 Days After Budget Announcement
15 Jun, 2026
Updated: 15 Jun, 2026
Enquiries for investment loans appear to have slowed significantly following the federal budget, according to internal Home Loan Experts data and broker observations from across Australia.
At Westpac, for instance, investment loan enquiries plummeted by 20%. We saw a similar trend at Home Loan Experts as well. We’ve recorded a staggering 56% decline in investor enquiries since the budget.
While it’s too early to determine whether this marks a long-term shift in investor demand, brokers say the budget has prompted many investors to pause, reassess their borrowing position, and become more selective about their next purchase.
Investors Hitting Pause Rather Than Walking Away
Home Loan Experts’ Senior Mortgage Broker Romy Dhunagana, says the biggest behavioural change is investors reconsidering how they invest instead of abandoning the market.
He adds, “It’s mostly a hold, not an exit. I’ve got several clients who’d lined up pre-approvals for two investment purchases and have now decided to sit tight. Their existing negative gearing is grandfathered, so holding protects a position that selling would forfeit.”
Several brokers reported that investors are taking longer to make decisions and are spending more time evaluating their options before committing to a purchase.
Home Loan Experts Senior Mortgage Broker Jonathan Preston says investors remain interested in property, but their approach has changed significantly. To quote Jonathan, “People are acting much more slowly and don’t appear to be rushing like they were before. A lot of people still think now is a good time to buy, noting sentiment has dipped, but the borrowing power is also lower than before.”
While enquiry volumes have softened, brokers say many investors remain active in the market and are looking for opportunities that make sense under the new environment.
What's Driving Investor Concerns?
When asked about the biggest concerns investors are raising, brokers consistently pointed to:
- Reduced borrowing power due to lender policy changes
- Uncertainty about future property market performance
- Concerns about preserving tax benefits and investment returns
Romy recalls an interaction with a customer, “The sharpest practical effect right now is in the gap between pre-approval and final approval. I’ve had a client holding a pre-approval for an established investment purchase watch his borrowing capacity fall by roughly a third when his lender moved its policy mid-process, enough to put him out of the market he’d been shopping in.”
Jonathan added, “A lot of people think the market is trending downward and don’t know when things will start to turn up. Confidence is low subsequently.”
The insight suggests investors are focused less on market headlines and more on how changes affect their borrowing power, cash flow, and long-term returns.
Property Preferences Are Changing
Brokers are also seeing changes in where investors are looking and what they’re buying.
Common trends include:
- Increased interest in newly built and near-complete properties
- Growing demand for SMSF lending strategies
- Existing homeowners exploring ways to restructure their property portfolios
Home Loan Experts broker Romy says, “The more interesting shift is the conversations changing shape. Existing owners are looking at converting their current home to an investment and buying the next one as an owner-occupier, and we’re seeing a clear lift in SMSF lending enquiries.”
Jonathan doubles down on it, “There will be more interest in new builds and we’re starting to see that momentum shift in the market already.”
These shifts suggest investors are becoming increasingly strategic, with many prioritising stronger yields, affordability, or future growth potential.
The Trend Media Isn't Talking About
While much of the discussion has focused on falling investor activity, brokers say there is another trend emerging beneath the surface.
“That’s the budget working exactly as designed: capacity is being redirected toward new supply, sometimes deal by deal.”
Jonathan believes another overlooked trend is the growing appeal of self-managed super funds, “SMSFs will be bigger than ever due to the tax advantages.”
These observations may provide an early indication of how investor behaviour could evolve over the coming months.
So, What Does The Market Look Like Now?
When asked to summarise today’s investor market in a single sentence, brokers offered the following perspectives:
- “It’s mostly a hold, not an exit.”
- “People are acting much more slowly and don’t appear to be rushing like they were before.”
- “At the weakest point in decades, sentiment is broken. Things have not looked this bleak in the 15 years I have been in property.”
Although enquiry volumes have fallen sharply since the budget, the consensus among brokers is that investors have not disappeared from the market. Instead, they appear to be taking a more measured approach, carefully weighing opportunities and risks before making their next move.
At Home Loan Experts, our mortgage brokers can help you navigate the post-budget investment market, compare your options, and understand whether your current loan is still right for you. You can contact us on 1300 889 743 or complete a free online assessment to speak with one of our mortgage specialists.
