The demand for home loans was stronger than expected in February, but the proportion of loans to first home buyers is at the second-lowest level on record, according to the Australian Bureau of Statistics.
The data showed the number of home loans granted in February rose by 2.3% to a seasonally adjusted 52,460.
Economists surveyed by Bloomberg expected the number of housing finance commitments to lift by 1.5% in the month.
Total housing finance by value lifted by 2.9% in February, seasonally adjusted, to $27.644 billion.
Loans to first home buyers, as a share of total of housing loans, fell to 12.5% - the second-lowest level since data commenced in 1991.
The average loan size fell by 2.3% in February but is almost 6% higher over the year.
The value of loans for investment housing rose by 4.4% in February to $10.737bn, after falling by 3.3% in January.
The value of loans for owner occupied housing lifted by 1.9% to $16.907bn in February.