Home loans in Geelong are evolving as property investors step up their activity in the market, reshaping lending trends and influencing how borrowers approach their financial strategies in 2025.
At Konnect Financial Services, we’re seeing firsthand how the surge in investor loans is affecting local buyers, whether you’re purchasing a home to live in, investing for the first time, or growing your portfolio. Understanding these shifts can help you make smarter property decisions and get ahead of the lending curve.
Investor loans are leading the way
According to the Australian Bureau of Statistics, the number of investor loan approvals grew by 3.5% over the June 2025 quarter, while owner occupier loans increased by a modest 0.9%. More strikingly, investor loan volumes have jumped 22% over the past year, compared to just 6% growth among owner occupiers.
This investor resurgence is not just a trend, it’s a clear signal that property investment is gaining serious momentum. And for borrowers seeking home loans in Geelong, it’s important to understand how this changes the landscape.
What’s driving the investor surge?
Several factors are making property investment more attractive than ever:
1. Low vacancy rates and strong rental yields
Rental markets across Australia are stretched thin, and Geelong is no exception. Vacancy rates are at historic lows, especially in high-demand suburbs, driving rents up and yields higher. Investors are moving quickly to secure properties in these tight rental markets.
2. Falling interest rates
With the Reserve Bank of Australia cutting the cash rate three times in 2025, borrowing is cheaper and more accessible. A lower rate environment has increased borrowing power by as much as 7%, making investment property loans more appealing to a broader range of buyers.
3. Rising home values and equity access
National median house prices are now over $800,000. Many long-term homeowners are tapping into the increased equity in their homes to fund property investments. This “equity harvest” trend allows buyers to purchase without large cash deposits, an opportunity many are using to build wealth through real estate.
4. Government incentives and tax settings
States like Victoria are introducing expanded stamp duty concessions, especially for off-the-plan homes. For Geelong buyers, this means more affordable entry points into investment properties. Smart investors are comparing state-level benefits and ongoing holding costs to shape their long-term strategies.
What it means for home loans in Geelong
If you’re looking to buy a home in Geelong, you may be wondering what this means for you. The increased focus on investor lending could affect you in several ways:
1. Increased competition
With investors actively buying in growth areas like Armstrong Creek, Highton and Newtown, competition for well-located homes is rising. Owner occupiers may need to act faster and come to market better prepared.
2. More selective lending
Some lenders are prioritising investor-friendly loans, making it harder for owner occupiers to access the most competitive rates or features. Working with a mortgage broker ensures you’re comparing more than just the big banks and finding a lender that suits your needs.
3. Opportunities to negotiate
On the upside, investors tend to be analytical and less emotionally driven. If you’re an owner occupier with pre-approval, you may have an edge when negotiating with sellers looking for fast, low-risk transactions.
How a mortgage broker can help
Navigating the lending environment in 2025 requires more than a simple rate comparison. At Konnect Financial Services, we help you:
- Compare home loans across a wide lender panel
- Access both owner occupier and investment-friendly loan options
- Structure your loan for tax efficiency and future flexibility
- Refinance or unlock equity to support future property goals
Whether you’re entering the market or growing your portfolio, working with a local mortgage broker in Geelong gives you an informed advantage, especially in a rapidly changing lending environment.
Forecasters expect investor loan activity to climb to over 230,000 approvals nationally by the end of 2025. While owner occupier loans will still represent the bulk of lending, the gap is closing. For Geelong, this means more dynamic buyer activity, steady demand, and continued price pressure in key growth corridors.
But the good news is that the same factors attracting investors, low rates, strong rental demand, and infrastructure investment, also create opportunities for owner occupiers. By getting the right advice and planning your move, you can still secure a competitive home loan and find the right property for your needs.
Let’s make your next move count. The team at Konnect Financial Services is here to help you secure smarter home loans in Geelong, whether you’re buying to live in or invest. We simplify the process, provide clear options, and tailor strategies to your unique financial goals. Contact us today.
