NAB Sees 15% Drop in Home Loan Applications
Synopsis
Australia’s housing market faces fresh pressure as NAB records a 15% fall in home loan applications during the June quarter.
National Australia Bank’s trading update showed that NAB home loan applications fell by 15 per cent in the June quarter, compared to the previous three months. They were down 9 per cent, as demand for mortgages slowed overall.
NAB’s Business and Private Banking segment saw applications fall by 9 per cent, but Australian home lending balances jumped 2 per cent to 4 per cent for business lending balances during the quarter.
In addition, the NAB home loan application also decreased, as the bank reported an 8 per cent increase in the number of “watch” list loans. These are loans identified by the bank as being at risk of default.
The pressure was felt most strongly in the construction sector, as well as in transport and storage, the bank noted. CEO Andrew Irvine said that rate hikes, recent tax changes, and geopolitical tensions were also weighing on its business.
Housing finance weakens nationally
It was revealed that the NAB home loan applications come after a big slowdown in housing loans in general. New dwelling loan commitments were down 5.2 per cent in value and 4.2 per cent in number of loans in the June quarter, the latest Australian Bureau of Statistics figures in August show.
Investor lending commitments were down the most, at 10.2 per cent in value, while new dwelling lending commitments were down 5.4 per cent compared to the same quarter last year, with all categories of dwelling loans commitments (owner-occupied, investor, and first-home buyer) also down.
This occurred after a weak March quarter. The number of new dwelling loan commitments fell 6.2 per cent and 3.8 per cent in value, and investor dwelling loan commitments also fell 5.3 per cent and 3 per cent in number and value, respectively, according to the ABS figures.
Other big banks also reported falls in mortgage applications. Mortgage applications for Westpac fell by 20 per cent, ANZ by 12 per cent, and Commonwealth by 15 per cent.
While mortgage balances grew, NAB home loan applications were down for NAB. Cash earnings for the quarter were up to A$1.83 billion, a 2% increase from the previous quarter. The six-month results show its cash earning to March 2026 at A$3.558 billion for the third quarter.
Source: The West Australia
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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