Westpac is writing thousands fewer mortgages as the major bank expects investor home loans to more than halve over the next year.Releasing a quarterly update on Monday, Westpac announced a 20 per cent dip in average monthly mortgage applications since changes to capital gains taxes and negative gearing were announced in May.Westpac’s financial year runs to September 30 and on current trends, the bank predicts the growth of investor home loans will be slashed from 9.1 per cent to 4.5 per cent next financial year.Owner-occupier loan growth will also dip from 5.7 per cent to 4.8 per cent.The “undersupply of housing” combined with population growth “is expected to partially offset” the impact of higher interest rates and the housing tax shake-up, the bank said.“While many households are feeling the impact of cost of living pressures, businesses are investing and our customers have continued to show resilience,” Westpac chief executive Anthony Miller said.More to comeRead related topics:Westpac