The Commonwealth Bank of Australia (CBA) led this growth, expanding its housing loan portfolio by $4.6 billion in November, marking a 0.76% increase. Macquarie Bank also demonstrated significant growth, with its mortgage book rising by $3.6 billion, a 2.32% increase for the month and nearly 24% over the year. In contrast, ANZ recorded a modest increase of $189 million, or 0.06%, its smallest monthly growth since April 2022.

This surge in mortgage lending is closely linked to rising property values. According to Canstar's analysis, the national median home price increased by 8.6% in 2025, the most substantial annual growth since 2021. Forecasts suggest that this upward trend will continue, with Sydney's median house price potentially reaching $1.9 million by the end of 2026.

However, the rapid expansion of the mortgage market has raised concerns among regulators. APRA has announced new measures to cap the proportion of new mortgages with high debt-to-income (DTI) ratios. Effective from February 2026, banks will be limited to issuing no more than 20% of new home loans with DTI ratios of six times or higher. This policy aims to mitigate financial risks associated with high levels of household debt.

For prospective homebuyers, these developments present both opportunities and challenges. While the growth in the mortgage market indicates robust lending activity and potentially more options for borrowers, the rising property prices and impending regulatory changes may impact affordability and borrowing capacity. It's crucial for buyers to stay informed about market trends and regulatory shifts to make well-informed decisions.