Mortgage Competition Heats Up: Australian Banks Cut Home Loan Rates to Win Borrowers

Western Australia’s home-loan market has recorded a positive lift in buyer activity, with new data showing 10,014 loans to owner-occupiers were taken out during the June 2026 quarter — 9.1% more than in the March quarter.

The figures, from the Real Estate Institute of Australia and reported by Real Estate Institute of Western Australia on 13 September, provide an encouraging indication that more Western Australians progressed with home purchases during the quarter.

REIWA President Suzanne Brown said the increase was expected after new property listings improved during the June quarter, which contributed to an increase in sales and therefore home loans.

First-home buyers were also active. 3,592 loans were made to WA first-home buyers during the quarter, up 2.1% from the March quarter. First-home buyers represented 35.9% of WA owner-occupier loans.

For prospective Perth buyers, these figures are a useful reminder that people are continuing to enter the market despite higher borrowing costs.

The increase doesn’t mean every buyer should rush into purchasing. Affordability remains challenging, and REIWA’s report shows the average WA owner-occupier loan increased to $720,012. That makes understanding repayments and borrowing capacity particularly important before making an offer.

Buyers can benefit from preparing their finance early: establishing a realistic budget, comparing lenders and understanding differences in interest rates, fees, offset facilities, redraw options and lending criteria.

For existing homeowners, increased lending activity can also be a prompt to check whether their current mortgage remains competitive rather than assuming their existing lender is still offering the most appropriate option.

The positive takeaway is clear: WA home-buying activity strengthened substantially during the latest quarter, with both overall owner-occupier and first-home-buyer lending increasing from the previous quarter.

Naga Mortgage Brokers can help Perth buyers and homeowners understand their borrowing position and compare suitable home-loan options for their next move.

General information only. Lending criteria, eligibility, fees and charges apply.