Australian housing credit growth has accelerated to an annualised rate of 6.9% in 2025, marking its highest level since November 2022, according to the latest data from the Reserve Bank of Australia.
The sharp uptick follows a rate-cutting cycle that began last February and the expansion of the federal government’s 5% deposit scheme in October 2025.
The surge in lending adds significant pressure to the RBA ahead of its upcoming policy meeting, joining recent reports of elevated inflation and robust employment figures as key indicators of a heating economy.
The acceleration is particularly noteworthy for central bankers as housing remains the most influential component of the consumer price index, carrying a 21.39% weighting in the latest Australian Bureau of Statistics update.
With credit growth now hitting multi-year peaks, economists suggest the RBA faces an increasingly complex balancing act between supporting home ownership and curbing inflationary pressures driven by the property sector.