May lending release showed a quieter March quarter

This article explains a release dated 13 May 2026. Figures and conditions relate to that release and may have changed since.

The ABS release on 13 May 2026 showed a pullback in new housing lending during the first three months of the year. The number of new dwelling loan commitments fell 6.2% from the December quarter to 139,794, in seasonally adjusted terms. Their value declined 3.8% to $103.0 billion. These were commitments accepted by borrowers, rather than a count of houses listed for sale. Read the March-quarter lending release.

The decline covered owner-occupiers and investors. Owner-occupier commitment numbers fell 6.9%, while investor numbers fell 5.3%. First-home-buyer owner-occupier commitments were down 4.3%. The headline dwelling series excludes refinancing, which the ABS reports separately. That distinction matters when reading a softer lending headline alongside active competition for existing borrowers.

What it means for a mortgage review

For a household reviewing its own loan, national activity is background information. It does not establish whether a particular refinance will save money. Our reading of the release is that buyers were taking on fewer new commitments during that quarter; it does not identify a best time for an individual household to borrow.

As current consumer context, ASIC Moneysmart’s refinancing guide explains that switching costs need to be weighed against the benefit of a lower rate. Relevant costs can include a discharge fee, an application fee and a break fee on a fixed-rate loan. A borrower with limited equity may also face lenders mortgage insurance, potentially reducing the benefit of switching.

The remaining loan term belongs in the comparison too. Extending it can reduce the scheduled payment while increasing interest paid over time. A useful comparison therefore separates the interest rate, upfront costs, ongoing charges and years remaining, rather than treating a smaller monthly payment as proof of an overall saving.

This article revisits the May release using that edition’s figures. It was prepared in November, and the linked refinancing guidance is current background reading rather than a document published with the original statistics.

General information, not personal financial advice. Consider your circumstances and check current lender or program conditions before making a decision.