Australian property investors squeezing out first-time buyers as record borrowing and rate cuts drive purchases

Interest rate cuts have boosted wealth for landlords and existing homeowners by lowering their mortgage repayments and driving up their property prices. Photograph: Hollie Adams/Reuters

Property investors borrowed a record sum, nearly $130bn, to buy homes over the year to June, supported by interest rate cuts but squeezing out first-time buyers.

Banks made almost 200,000 new loans to landlords over the year, the most since 2022, while the number of new first-home mortgages slipped to 116,000.