Back-to-back cash rate hikes have placed increasing pressure on home buyers’ budgets, according to new analysis from Canstar.

Last week, the Reserve Bank of Australia (RBA) raised the cash rate target to 4.35 per cent, marking the third consecutive interest rate increase.

The data shows that during the March 2026 quarter, the average national new loan size fell from record highs seen late last year, with notable declines in key markets such as New South Wales and Victoria, where property prices have also been easing.

Canstar’s analysis revealed that owner-occupier borrowers led the downturn, with the total value of new loans dropping by $2.8 billion compared to the previous December quarter.

Investor activity also slowed, with new loan values falling by $1.3 billion in the first three months of the year, reflecting reduced borrowing demand across the market.

Despite this decline, overall lending remains higher than a year ago, up 18 per cent across all loans, with investors recording a 25 per cent year-on-year increase.

Canstar data insights director Sally Tindall noted that borrowing activity is still elevated, although affordability pressures and rising interest rates are beginning to cool momentum in the housing market.