15% Drop in NAB Home Loan Applications: What Now?
If you’ve been putting off a chat about your home loan, this might be the nudge you need. NAB’s latest quarterly update shows home loan applications fell 15 per cent in the June quarter alone, and were down 16 per cent on this time last year. It’s not just NAB either. Westpac, CBA and ANZ have all reported similar pullbacks over the same period.
What’s Actually Going On
Higher interest rates, cost-of-living pressure and recent federal budget changes are making borrowers think twice before applying. NAB chief executive Andrew Irvine pointed to a mix of global uncertainty and domestic rate rises as the main drag on demand, with investor applications hit hardest, down 17 per cent for the quarter.
There’s a second, quieter story sitting alongside the drop in applications: early signs of stress. NAB reported a rise in “watch loans,” the loans banks keep a closer eye on because the borrower could be vulnerable if things get tighter, up from 1.11 per cent to 1.17 per cent of the bank’s loan book. It’s not a red flag on its own, but it’s a sign that some households are feeling the pinch more than the headline numbers show.
What This Means If You’re Thinking About Buying
Fewer people applying for loans doesn’t mean fewer people getting approved. If anything, it’s a good time to make sure your own numbers stack up before you go house hunting. That starts with understanding your real borrowing capacity, not just the maximum a lender says you can have, but what you can comfortably repay if rates move again.
What This Means If You Already Have a Loan
If it’s been a while since you last looked at your home loan, now’s a sensible time to check it’s still working for you. A few things worth doing:
- Stress-test your repayments. Could you still manage if rates went up another notch?
- Build in a buffer. Even a small repayment buffer takes the pressure off if your circumstances change.
- Compare what’s out there. Lending conditions have tightened, and the right lender for you two years ago might not be the best fit today.
- Look at refinancing before things get tight, not after. It’s a far easier conversation to have early.
Softer lending numbers and rising watch loans both point to the same thing: affordability, not just approval, is what matters most right now. Whether you’re buying your first home, your next one, or just want to know where you stand, having a proper plan around what you can genuinely afford is what keeps you in control, no matter which way the market moves next.
Want to know where you stand?
At OM Financials, we make the loan process simple and guide you every step of the way. Speak with our brokers today to understand your borrowing power and the options available to you. Book your free consultation or contact us anytime on 0478 876 967. Follow us on Instagram and LinkedIn.