Property-backed loans settled in Australia’s mainland states rose by 6.8% across the 2025 financial year, aided by a boost in buyer sentiment from rate cuts, according to a PEXA report.
In FY2025, 544,630 new property-backed loans were settled in New South Wales, Victoria, Queensland, Western Australia, and South Australia. Queensland led in total property settlements, while Victoria saw the most new mortgages.
“521,750 of these loans (96%) were attached to a residential property. This surpassed growth in property settlement volumes over the same period (up by just 3.2% y/y), indicating that a greater proportion of property settlements required a loan,” wrote PEXA.
A total of A$380.6 billion was settled in new loans over the last financial year, up 14.7% from the previous year, with $346.4 billion for residential property.
New commercial loans rose by 13.2% to 18,000 in New South Wales, Victoria, and Queensland, with their value rising by 22.2% to $34.2 billion.
According to the report, the Reserve Bank of Australia’s 25-basis point cash rate cuts in February and May “helped to support household sentiment, consumption, home purchases and savings rates.”
Victoria posted the most new loans in FY2025 at 148,126. It also had the joint-highest percentage of settlements with a loan, with both Victoria and Western Australia recording 77.2%.
Median loans were highest in the Greater Sydney area at $800,000, up 5.2% year-over-year. Greater Melbourne’s median loans were the lowest among state capitals at $555,000, while Greater Brisbane saw the largest growth in median loans at 12.6%.
Melbourne’s Truganina and Roxburgh Park were among the most popular metropolitan suburbs for home purchases in the first five months of calendar year 2025, according to National Australia Bank data. The Melbourne area accounted for five of the Top 10 most popular suburbs.
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