Speaking at a parliamentary hearing, Comyn noted that the present rate of credit growth might exceed levels deemed sustainable by policymakers and regulators. He stated, "Our view would be that a more sustainable credit growth rate in housing would be slightly below the current level." This perspective underscores the delicate balance between fostering economic growth and maintaining market stability.
Recent data from the Australian Bureau of Statistics indicates a 6.4% rise in new loan commitments for dwellings in the third quarter of 2025. Additionally, the Reserve Bank of Australia (RBA) has observed that total housing credit growth has surpassed post-global financial crisis averages, largely driven by increased investor activity spurred by low interest rates.
CBA has been at the forefront of this trend, expanding its mortgage portfolio by 6% to A$664.7 billion in the fiscal year ending June 30. Despite this growth, Comyn anticipates a potential cooling in housing demand, citing subdued expectations for interest rate cuts and projecting that the cash rate will likely remain at 3.6% through 2026 due to persistent inflation.
For Australian consumers, particularly those in the 25-55 age bracket with middle to upper-middle incomes, these developments highlight the importance of prudent financial planning. The current environment of high home loan demand and rising property prices necessitates careful consideration when entering the housing market. Utilizing comprehensive financial calculators and seeking personalized financial advice can aid in making informed decisions aligned with individual financial goals.
In summary, while the housing market continues to experience robust activity, stakeholders must remain vigilant. Sustainable credit growth is essential to ensure long-term financial stability and equitable access to housing for all Australians.
