Westpac says mortgage applications fell 20% after Australian tax changes

Westpac has reported a 20% drop in mortgage applications in the period following changes to Australia's tax rules, according to the lender's commentary. Application volumes are a leading indicator of future loan settlements, so a decline of that scale points to slower growth in the bank's mortgage book in coming quarters if the trend persists. Australia's major banks compete heavily on home lending, which accounts for the bulk of their domestic loan portfolios. Westpac did not attribute the fall entirely to the tax measures, and it remains unclear how much of the decline reflects a pull-forward of demand ahead of the changes rather than a durable reduction in borrowing appetite.