Home loan demand from investors has dropped by nine percent, the largest monthly percentage decline since 2015, new data has revealed. 

According to new Housing Finance data from the Australian Bureau of Statics (ABS), investor loan demand dropped by $1.07 billion (9%) when seasonally adjusted between February and March 2018, the largest monthly percentage drop since September 2015.

Demand from owner-occupiers also declined, falling by 2% ($405 million) over the same period.

The ABS data found that, in total, 53,017 home loans were approved in March, down by 2.2% from February, falling for the fourth consecutive month in a row.

The overall value of housing approval also declined, dropping by 4.4% to $31.9 billion, largely spurred by a 9% drop in the value of investor loans ($10.9 billion), with the value of owner-occupied mortgages also falling, dropping by 1.9% to $21 billion.