The Australian dream of owning a home isn't slowing down anytime soon.
Mortgage inquiries jumped 12.3%, year-over-year, during 2025's fourth quarter, according to the latest data from credit reporting and data analytics company Equifax, marking the largest rise in mortgage demand since 2021.
The surge — revealed in the company's latest Consumer Market Pulse report — points to renewed interest among borrowers despite ongoing affordability pressures and a persistent housing shortage. The double-digit increase suggests would-be homeowners and upgraders alike are eager to get into the market, or refinance for better options, amid expectations that interest rates may soon be heading higher.
"There's a lot of fear of missing out, particularly for the first-time homebuyers," Luke Ashby, mortgage broker and finance specialist at Brisbane-based Emerge Finance, told Australian Broker. "But also, a lot of investors are inquiring too. People who bought during COVID-19, in 2020, 2021 or 2022. They have heaps of equity now and want to buy an investment property."
In addition to rising prices, buyer anxiety and a lack of housing supply, the broker noted that there are other factors driving demand, including the government’s updated Home Guarantee Scheme.
"The cap on the 5% scheme was lifted in October," Ashby said. "We've had a lot of inquiries since then."
Describing December’s inquiries as "solid," Ashby added that January recorded the highest volume of inquiries in "at least five years."
Kevin James, chief solutions officer at Equifax Australia, agreed.
“This is a significant increase in mortgage demand… likely to have been supercharged by the government's expanded 5% scheme." He added that buyers "rushed to lock in deals before the year's end."
The uptick also came amid renewed market jitters that the Reserve Bank of Australia (RBA) might lift interest rates again as inflation pressures persisted. Earlier this month, most mortgage holders weren’t surprised when the nation's central bank raised the official cash rate (OCR) by 25 basis points, citing ongoing inflation. The RBA signalled that another hike could be on the cards in 2026, prompting brokers and lenders to quickly update their forecasts.
And the potential for rising interest rates threaten to squeeze an already hot housing market.
"People are a bit more educated now and they realise if they don't get in now, then they won't get in," Ashby said.
"Brisbane house prices went up 1.2% last month," he continued. "So I'm having deeper conversations with people to say, 'hey, houses went up 1.2% last month. If they go up another 1.2% each month for the rest of the year and you want to wait until next year, then all of a sudden you're looking at a much more expensive property. You may be priced out further and have to change locations, or change the style of property that you're after, and you have to compromise.' Versus, telling them, let's actually look and see whether or not it's achievable now, because it's only going to get harder given the statistics last year, with how much the property market went up, and how much it went up last month alone as well."
The report highlighted strong demand across multiple segments. Upgraders led the way with 16% growth during the quarter, compared with 2024's fourth quarter. Homebuyers aged 46- to 55-years old were the cohort with the highest demand, with inquiries up 13.6%, year-over-year, in the quarter, while first-time homebuyers posted an 11.2% rise. Refinancing activity also grew, climbing 9.6% over the same period.
By state, Queensland showed the strongest appetite for mortgages, with inquiries up 17% year-over-year, followed by Western Australia and New South Wales, up 15% and 13.5%, respectively.
