Home loan enquiries surge amid rate cuts, first-home incentives and refinancing activity
Mortgage demand has reached its highest level in three years, supported by lower interest rates, government support for first-home buyers and escalating rents, according to new data.
Equifax’s Consumer Market Pulse for December 2025 showed overall home loan enquiries were 18% higher than in the same month a year earlier, marking the strongest December increase since 2022.
The major banks captured the bulk of new mortgage enquiries, while refinancing accounted for more than one-third of total demand.
Queensland, Western Australia and New South Wales recorded the sharpest increase in enquiries in December, indicating heightened activity in those housing markets.
“The momentum shows first-home buyers rushing to utilise the deposit scheme, however this trend will likely be sensitive to the cash rate in 2026,” said Kevin James (pictured right), chief solutions officer at Equifax.
“If rates hold or drop, we could expect this energy to carry well into 2026, however, any rate hikes could see this stalled. With 36% of all mortgage demand in December 2025 driven by refinancing, it is a good indication that existing borrowers are aggressively hunting for value.
“This activity could suggest that mortgage holders are acting now to protect themselves against any potential cash rate uncertainty as we move further into 2026.”
The data also pointed to rising use of unsecured credit. Equifax reported that demand for personal loans and credit cards is now at its highest point in three years.
“With demand (for personal loans) up 10.4% year-on-year, alongside a significant 15.3% surge in credit card enquiries, it’s clear that Australian households were actively seeking credit to manage the holiday season,” James said. “This isn’t just about accessing new funds — it represents a deeper consumer reliance on credit.”
Bank transaction analysis by Equifax, comparing October 2025 with October 2024, found the average amount spent on credit card repayments had risen by 35%.
“To me, this signals that consumers aren’t just opening these accounts for a rainy day, they are leaning on credit to bridge gaps in their daily cash flow,” James said.
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