Australian Finance Group (AFG) released its May 2015 mortgage index figures today which showed investor lending in Sydney and Melbourne rising to a 21 year high.
The proportion of loans written nationally to investors has surged to 43 per cent from 39 per cent in April 2014.
And with another rate cut set to take fixed rate mortgages down to incredibly cheap levels - some at below 4 per cent - the investor surge is likely to continue.
April seasonally softer
However, over the past two years there has been a considerable run-up in the number of mortgages written.
State versus state
Investors lead market
Noted Mark Hewitt, general manager of sales and operations at AFG:
"Investor borrowing in both Sydney and Melbourne is now at the highest level we have recorded in 21 years".
A further interest rate cut delivered yesterday will do little to dampen investor enthusiasm.