March credit data has revealed that Australians are reshaping their mortgages and personal debts around familiarity and buffer‑building.
New figures from Equifax have shown that mortgage holders and other borrowers are reshaping existing credit rather than abandoning it – and are overwhelmingly choosing to do so with the banks they already use.
Equifax reported that overall mortgage demand in March was 7.9 per cent higher than a year earlier, keeping year‑to‑date housing credit inquiries on a 7.5 per cent growth path.
The figures revealed a clear tilt towards upgrades with existing lenders, which rose 12.6 per cent year on year – almost twice the 6.9 per cent increase in refinancing to a new provider.
That pattern was most pronounced in Queensland and Western Australia, where demand for same‑lender upgrades jumped 26.9 per cent and 16.5 per cent, respectively.
Equifax chief solutions officer Kevin James said the March numbers pointed to a consumer base actively preparing for a more volatile environment.
“The Equifax Consumer Market Pulse March data appears to suggest that the Australian consumer entered a phase of financial preparedness,” he said.
“Following the global events at the end of February and the subsequent pressure on fuel prices and inflation, we have seen preferences for familiarity.”
James stressed that customers were still exploring cheaper offers outside their current bank, but that most of the energy was now among those staying put and reshaping their existing loans.
“This growth rate is nearly double that of refinance switching, suggesting that mortgage holders were prioritising certainty,” James said.
“Whether they were seeking a more competitive rate to offset rising costs, or accessing equity to renovate or open the ‘Bank of Mum and Dad’, they were doing so within the perceived safety of their existing banking relationships.”
First home buyers rely on equity and incentives
After a strong run in previous months, first home buyer mortgage inquiries cooled to more measured levels, with national FHB demand up 4.3 per cent over the year.
Under the surface, activity was heavily concentrated among very young buyers, with applications from 18–25‑year‑olds climbing 11.4 per cent year on year.
State trends were also uneven, with Queensland recording a 14.6 per cent annual rise in FHB demand, while Victoria slipped by 4 per cent.
James said this pattern underlined the significance of intergenerational support and state‑based incentives.
He also said that the growth in young first‑time borrowers could not be separated from the rise in older borrowers upgrading or restructuring their own home loans.
“The simultaneous rise in older cohorts upgrading their own mortgages can also indicate that this entry is often being facilitated by parents drawing on their own equity,” he said.
Auto demand softens as unsecured credit reshapes
While housing credit held up, demand for new auto loans slipped 0.4 per cent compared with March last year, with most of the fall concentrated among 26–35‑year‑olds, whose applications dropped 5.9 per cent.
In contrast, unsecured credit demand grew, yet in a way that points more to consolidation than to discretionary spending.
Personal loan inquiries rose 9.7 per cent year on year, driven by a striking 26.7 per cent jump among borrowers aged 56 and over.
Credit card applications increased 5.5 per cent, led again by 18–25‑year‑olds, whose card demand was up 11.7 per cent.
James said the surge in older borrowers taking out personal loans was closely linked to rising day‑to‑day costs and a desire to streamline complex debt stacks.
“As costs such as fuel and groceries rise, it appears more mature borrowers are looking to simplify their finances by folding multiple high-interest debts into a single, predictable monthly payment,” he said.
A credit market built around ‘known’ safety
Taken together, Equifax’s snapshot paints a picture of consumers who are still willing to use credit – but are doing so with a strong bias towards familiar institutions, predictable repayments, and reused equity rather than fresh leverage.
Looking ahead, James said that pattern of cautious adjustment rather than retreat would likely define the coming year, particularly if global tensions and domestic cost‑of‑living pressures persisted.
“Ultimately, the resilience of Australian consumers in March tells us a story of proactive risk management. Australians aren’t necessarily pulling back from credit; they are repositioning it,” James explained.
“As we move further into 2026 and depending on world influences in our domestic market we could expect this focus on ‘known’ safety and debt simplification to remain in the Australian credit landscape.”
[Related: Home ownership dream slips further away from Australians]
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