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Over FY25, there were 544,630 new property-backed loans settled in the five mainland states, up 6.8 per cent from FY24.
The value of these loans was around $380.6 billion, up 14.7 per cent from the previous year.
Of the total, 521,750 (96 per cent) were attached to a residential property, as highlighted in PEXA’s Mortgage Insights Financial Year 2025 report.
Victoria continues to be a hotspot for investment, with 148,126 new loans over the financial year, making up 20.5 per cent of the total.
Queensland trailed, with 146,283 new loans in FY25, 20.3 per cent of the nation’s total.
NSW came in third, with 142,653 new loans over the year. Despite being the most populous state, it made up just 19.8 per cent of the total new loans.
The country’s total new loans are up 26.6 per cent since FY20.
Commercial property has also recorded strong growth, outpacing residential.
Across NSW, Victoria, and Queensland, the volume of new commercial loans reached around 18,000 in FY25, up 13.2 per cent from the previous year and 68.8 per cent from FY20.
Refinancing is also on the rise, with a total of 401,114 in FY25, up from 396,653 in FY24, a rise of 1.1 per cent.
The value of these refinances reached $242.3 billion, up 14.7 per cent from FY24.
There were a couple of influences on this strong growth. Unsurprisingly, the two RBA cash rate cuts in February and May have sparked some increased borrower activity.
In March, following the first rate cut in over four years the month prior, refinances climbed 20 per cent from the previous year.
This continued in April with refinances 21 per cent higher. This reached its peak in June with 25 per cent more refinances than FY24.
Labour market resilience was another major factor in this sustained growth.
PEXA said that while adult population growth moderated from recent peaks and unemployment rose to 4.3 per cent, jobs growth has remained strong and wage inflation rose to 3.4 per cent, above the 2.4 per cent consumer inflation rate.
“Real incomes are recovering,” PEXA said. “This strength was a key reason why mortgage arrears rates stayed low and home prices resumed rising, despite ongoing concerns about the ‘cost of living’ through FY25. Stable employment and income are required for most purchasers to qualify for a loan.”
Further to this, government incentives are helping get more people into property. Each of the five mainland states introduced some form of first home owner legislation.
Each state announced stamp duty concessions, first home owner grants, and shared equity schemes.
Greater Sydney remains firmly the most unaffordable area of the country, with the June quarter recording a median loan value of $800,000.
Greater Brisbane trails at $640,000, and Greater Melbourne $554,587.
The regions of NSW recorded a median loan value of $559,650, regional Queensland $526,729, and regional Victoria $418,998.
The strong performance of Brisbane and Melbourne mirrors recent data, which revealed the two cities drove auction clearance rates not achieved in a year.
[Related: Auction clearance rates highest in a year]
