Two-speed housing market emerges as older borrowers drive refinancing
Demand from younger Australians looking to buy their first home has remained firm, even as mortgage rates climb and markets price in the possibility of another Reserve Bank cash rate increase, according to new figures from data and analytics firm Equifax.
Moses Samaha (pictured top), executive general manager at Equifax, described the latest pattern as a “two-speed race” emerging between age groups. The lift in first-home buyer enquiries continued after the Reserve Bank increased the cash rate to 3.85% in February.
“Young Australians are proving remarkably resilient,” Samaha said. “Even in a tightening rate environment, they are seemingly undeterred in their push to enter the market.”
Equifax reported that first-home buyer enquiries in the 18–25 cohort rose 9.87% year on year in February. For those aged 26–35, enquiries increased by 3% over the same period.
Samaha also pointed to government support as a continuing factor behind activity. “the government's First Home Buyer Deposit Scheme continues to be a driver of first-home buyer activity, almost insulating first-home buyers from the immediate chill of rate hikes,” he said.
While younger customers focus on entering the market, Equifax said borrowers later in life are increasingly seeking changes to existing loans. The company has observed refinancing enquiries skewing older, with Australians aged 55 and over recording the strongest growth.
Refinancing enquiries from borrowers aged 55-plus rose 12% year on year in February, the largest increase across age brackets. Those aged 46–55 were up 8%.
Equifax estimated refinancing now represents about 34% of total mortgage demand. It also reported a 15.2% year-on-year rise in “refinance upgrades” with the same lender, alongside a 44% increase in external refinancing customers among large non-bank lenders.
“We’ve been watching this trend for a while, but it’s starting to really cement that Australian mortgages are stretching further into later life,” Samaha said.
“The current rate environment appears to be triggering all Australians to take action – regardless of age. Mortgages are not just the young families' burden, pre-retirees and Gen X are actively carrying and refinancing debt deep into 2026.”
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