Housing credit impulses eases ahead of rate hike

Credit growth eases

Credit growth slowed from December's hot 0.87 per cent (the fastest since 2022) to 0.49 per cent in January, in part due to slower business credit growth. 

Credit growth to property investors remained sprightly at a seasonally adjusted 0.82 per cent in January, but this was ahead of the interest rate hike in February. 

However, monthly housing credit growth overall was a little cooler, pulling back from 0.68 per cent to 0.59 per cent. 

Moreover, with higher interest rates ahead, the growth in housing credit is likely to cool as the year goes on.

Indeed, the derived housing credit impulse may already have rolled over in January. 

Overall, there's still a solid pace of lending to first homebuyers and investors, but it looks likely that price growth will be slower in 2026 than it was last year as sales listings increase. 

---

1. Download our property buying guide

Download our free property buying guide here. 

You can also check out a few of our recent property purchases here. 

Get in contact with us today if strategic property investment is your thing. 

    2. Subscribe to our Top 10 Podcasts for Investors

Listen in to our podcasts

The Australian Property Podcast is rapidly becoming one of Australia's biggest business podcasts, now with over 50,000 audio downloads per month, and growing fast.

And our popular Low Rates High Returns Show also remains available on Spotify.

    3. Subscribe for my free daily blog

Subscribe for my free daily blog with over 4½ million hits here. 

You can also catch up with me daily on Twitter here, where I'm far too active daily and have over 16,500 followers. 

By the way, I'm an 8-times published author on finance, investing, and business, so you can check out some of my books here. 

My new book, co-authored with Cate Bakos is available to buy here or on Amazon here - check out our free Buy Right podcast series here. 

4. Work with me privately

For a limited time you can book in a free diagnosis call with me here, so book in a call today.