Westpac Mortgage Applications Fall as Tax Changes Sap Demand

Westpac Banking Corp. mortgage applications are heading for the worst quarter in a year as tax changes for property investors weaken demand for real estate.

Average monthly home loan applications fell about 10% to around 30,000 in April and May, the lowest since the third quarter of last year, the bank said in a statement Thursday. The decline may accelerate further through the current quarter ending June given the monthly average run rate since the tax changes were unveiled sits at around 27,000.

Westpac’s head of consumer banking Carolyn McCannpointed to “higher rates and policy change” that will “slow ...