New Equifax data has shown mortgage inquiries tumbling across every state and age group, signalling a major shift in how households are approaching debt.
Equifax’s Consumer Market Pulse June 2026 report, which tracks national credit demand trends, has revealed double‑digit declines in home‑loan activity and a concurrent pullback in unsecured credit.
Equifax’s figures revealed that overall Australian mortgage demand in June was down 14 per cent year on year, with no state or age cohort recording positive growth.
The ACT posted the steepest fall at 18.6 per cent, followed by Victoria at 15.9 per cent and NSW at 15 per cent – while Western Australia stood out as the most resilient market with a still‑sizeable 8.5 per cent decline.
Demand from 26–35‑year‑olds fell 18.2 per cent, and 18–25‑year‑olds were down 17.9 per cent, compared with a relatively modest 5.6 per cent decline among borrowers aged 56 and over.
First home buyer (FHB) demand has also weakened sharply, dropping 17.2 per cent nationally, with Queensland FHBs pulling back by 20.8 per cent and Victorian FHBs down 18.2 per cent.
Equifax said that demand from FHB demographics had “plummeted”, with FHBs aged 26–35 down 20.4 per cent and those aged between 18–25 dropping 18 per cent.
Refinance activity is also cooling, with refinancing with the same lender down 10.4 per cent year on year, while refinancing with a different lender declined 15.1 per cent.
Kevin James, chief solutions officer at Equifax, said that major eastern states were leading the retreat in switching, with NSW and Victoria recording deep double‑digit drops in refinance activity of 18.3 per cent and 16.6 per cent, respectively.
Summarising the mortgage picture, Equifax said it observed “no positive mortgage growth” in June across any state, territory, or age demographic.
Unsecured credit shifts into reverse
The June results also showed that the softening is not restricted to housing‑related borrowing.
Credit‑card demand fell 2.8 per cent year on year, with all states and age groups in negative territory, while personal‑loan applications slipped 1 per cent.
Equifax said that June 2026 marked the first time it had recorded negative demand in personal loans in 18 months.
Credit‑card demand has now fallen for three consecutive months, which Equifax said was a pattern it “hasn’t seen play out in the market since 2022”.
Older consumers aged 56 and above are the only cohort still showing positive demand levels in personal loans and auto loans.
Western Australia once again emerged as the outperformer, with the state recording 7.1 per cent growth in personal‑loan demand.
Equifax says borrowers shift from proactive to defensive
Commenting on the findings, Equifax chief solutions officer Kevin James said the June data confirmed a transition from cautious risk management to a more defensive stance among Australian households.
“The proactive risk management we observed among Australian households earlier this year has evolved into a far more conservative, defensive approach to borrowing,” he said.
He said this pointed to a cumulative “double whammy” of persistent cost‑of‑living constraints and a sustained high‑interest‑rate environment.
In his view, households “appear to be responsibly choosing to preserve liquidity and actively curb their exposure to new debt commitments”.
James also said that the pullback extended beyond mortgages into everyday unsecured credit.
“What makes June’s data particularly notable is that the softening is not confined to big‑ticket, interest‑rate‑sensitive assets like mortgages,” he said.
He also drew attention to a “visible generational divide” across the credit spectrum.
James said under‑35s were “pulling back hard”, with the retreat “clearest in new mortgage applications, where demand from the 26–35 age group has effectively hit a wall, dropping -20.5 per cent”.
By contrast, he said that the 56-plus demographic “continue to display resilience, tracking modest growth in both auto loans (+4.6 per cent) and personal loans (+5.3 per cent)”.
“This older cohort generally holds more unencumbered wealth and lower debt leverage, insulating them from the immediate friction of current cash rates,” James said.
[Related: Clearance rate lifts as sellers retreat]
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