---
title: "Westpac Mortgage Applications Drop 20% Following Federal Tax Policy Changes"
url: https://projectchintan.com/article/westpac-home-loan-applications-down-after-budget-e3puq
publisher: Project Chintan
author: Project Chintan Newsroom
section: World
published: 2026-08-11T12:46:32.530Z
modified: 2026-08-11T15:09:44.235Z
language: en-IN
---

# Westpac Mortgage Applications Drop 20% Following Federal Tax Policy Changes

Westpac reports a significant decline in mortgage applications after the Australian government tightened property tax concessions. Despite the drop in new lending activity, the bank's quarterly profit rose to $1.8 billion.

## Key takeaways

- New mortgage applications at Westpac declined by 20 per cent between May and July.
- The drop in lending demand follows the tightening of tax concessions for property investors.
- Westpac reported a $1.8 billion net profit for the June quarter, up 3 per cent from the previous half-year average.
- Housing credit is still projected to grow by 4.7 per cent in the current financial year.

## What Happened

Westpac, the second-largest mortgage lender in Australia, recorded a 20 per cent decline in average monthly home loan applications between the May federal budget and the end of July. This downturn followed the government's decision to restrict tax concessions for property investors. Despite the reduction in application volume, Westpac reported an unaudited net profit of $1.8 billion for the June quarter, marking a 3 per cent increase over the quarterly average of the previous half-year.

## Background

The Australian housing market is responding to fiscal adjustments introduced during the May budget. The tightening of tax concessions for property investors appears to have immediate cooling effects on lending demand. However, Westpac Chief Executive Anthony Miller noted that while cost-of-living pressures are impacting households, the broader business sector remains active in investment.

## Key Facts

- Loan Applications: New mortgage requests fell by 20 per cent following the May budget announcement.
- Financial Performance: Unaudited net profit reached $1.8 billion for the June quarter.
- Market Outlook: Westpac expects total housing credit to grow by 4.7 per cent this financial year and 5.2 per cent in the subsequent year.
- Bank Position: The institution's profit rose 3 per cent compared to the March half-year quarterly average.

## What Happens Next

Westpac maintains a growth forecast for total housing credit despite the current drop in new applications. The bank projects credit expansion to accelerate from 4.7 per cent to 5.2 per cent in the coming year. Management indicates a continued focus on balance sheet strength while navigating economic uncertainty and persistent cost-of-living challenges for domestic borrowers.

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Canonical: https://projectchintan.com/article/westpac-home-loan-applications-down-after-budget-e3puq
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