First homebuyer scheme kicks off

APRA quarterly

A quick look at APRA's latest quarterly ADI statistics. 

The flow of new interest-only lending loosened a little in the December 2025 quarter, with 22 per cent of loans by value being written on that basis.

That said, many investors are also selling up, and the total value of interest-only loans across the system remains near all-time lows at just 11½ per cent of loans by value.

There was also a rapid increase in balances sitting in offset accounts in the 2025 calendar year, rising from $299 billion to $341 billion.

There was an increase in high-LVR lending the December quarter, relating to the government's 5 per cent deposit scheme, with 7.7 per cent of loans written at an LVR of 90 per cent or above.

Such lending is of little risk to the banking system, though - if anyone's on the hook for any potential loss-making loans here it would be the taxpayer. 

Overall, loans in arrears remained at extremely low levels. 

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