Westpac shares fall 5% as mortgage applications drop 20% after tax changes

Shares in Westpac fell about 5% after the bank disclosed a roughly 20% drop in mortgage applications, a decline attributed to recent tax changes affecting property purchasers. The move came as investors positioned for the Reserve Bank of Australia's August decision, where a hold is widely expected on the back of cooling inflation and a weakening housing market. Softer loan demand at one of Australia's largest mortgage lenders adds to evidence of slowing housing activity. No change to Westpac's earnings guidance was reported alongside the application data.