New data reveals loan lodgements in SA have dropped 25 per cent since January, before the rate rise cycle began.
Fewer South Australians are taking out mortgages now compared to at the start of the year – further proving just how much interest rates hikes have impacted the property market.
Loan Market’s October loan trends report reveals lodgements in SA have dropped 25 per cent since January, before the rate rise cycle began.
Credit expert at Loan Market Shay Waraker said buyers were likely being more cautious as property prices declined and interest rates climbed.
“With borrowing capacities impacted by increasing rates, buyers may be waiting to see if prices fall further before jumping into the market,” she said.
The biggest decline in loan lodgements was recorded among investors at 39 per cent, followed by owner-occupier upgraders (25 per cent – the highest of any state) then first-home buyers (10 per cent).
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Loan Market credit expert Shay Waraker.
In addition to the four rate hikes so far this year, investors have also bore the brunt of budget changes to capital gains tax and negative gearing.
Meanwhile, while the rate hike cycle in 2026 has driven a decline in loan lodgements, it has done the opposite for refinancing – reaching a record-high of 57 per cent nationwide in September.
“When rates increase, there are two things we usually see: a decrease in new loan lodgements and an increase in people refinancing,” Ms Waraker said.
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“After a rate hike, mortgage holders tend to look more closely at their loan – whether to see if they can find a more competitive deal or make some changes to free up cash flow.
“In this current climate, many homeowners are looking for some wriggle room in their budgets.”
The report comes as new research from Westpac reveals 38 per cent of South Australians are delaying plans to buy or sell because they are concerned about interest rates – a concern playing a greater role in SA than anywhere else in the country.
Westpac consumer chief executive Carolyn McCann said people were feeling conflicted about the uncertainty in the current market.
“People still want to buy and sell property, but many are seeking greater certainty before making a move,’ she said.
“The challenge is that waiting for the perfect moment can mean missing opportunities that are right in front of you.”
