FX.co ★ Australia Home Loans Slide 4.3% in Q1 2026 After Strong Late-2025 Surge

Australia’s home loan activity has swung sharply into negative territory in early 2026, with the first quarter recording a -4.3% change month-over-month, according to data updated on 13 May 2026. This marks a pronounced reversal from the fourth quarter of 2025, when home loans had climbed by 10.6% on a month-over-month basis.

The figures highlight a rapid cooling in housing finance demand after a strong finish to 2025. The “actual” first-quarter 2026 result measures the change in home loans compared with the previous month, while the “previous” figure reflects the change in the final months of 2025 relative to the month before. The shift from double‑digit growth to contraction suggests Australian borrowers have turned more cautious in early 2026, signaling a more subdued tone in the housing market after last year’s surge.