Mortgage demand surged in the September quarter, highlighting new growth opportunities for brokers as borrower confidence rebounds.
According to the Equifax Quarterly Consumer Credit Insights Report, secured and unsecured credit applications rose 8.2% year-on-year, while mortgage applications jumped 10.3%, marking the strongest annual rise since 2021.
At the same time, first-home buyer (FHB) activity reached its highest level since early 2022. Yet total active mortgage accounts declined 0.8%, suggesting affordability pressures are preventing some approvals from becoming settlements.
Equifax identified the top first-home buyer demand hotspots based on application volumes and median loan sizes across NSW, Queensland, and Victoria — data brokers can use to pinpoint rising client activity.
“The Equifax FHB Demand Hotspots show strong interest in established property corridors in Sydney, Southeast Queensland, and Melbourne,” said Kevin James (pictured), chief solution officer at Equifax.
“While we have seen an increase in property-buying intention, specifically in the Gen Z and Millennial demographic, housing affordability was cited as a primary concern in the 2025 iCIRT Consumer Research.
“It’s important to remember that while first-home buyers have access to incentives such as the government’s 5% deposit scheme, it is not enough to close the gap for many. With rising house prices demanding higher LVRs, the barriers to entry persist – regardless of the applicant’s deposit size or credit quality.”
Despite broader caution, housing sentiment remains a bright spot. Westpac said “homebuyer sentiment continues to firm,” with its time to buy a dwelling index up 9% in three months to 96.5 — the highest in over a year amid lower interest rates and an expanded First Home Buyer Guarantee.
The iCIRT Consumer Research also found that 67% of Millennials and Gen Z Australians plan to buy, build, or renovate a home within five years.
Beyond the high-demand suburbs, Equifax identified first-home buyer opportunity zones — more affordable suburbs within 60 km of major capitals — where intent meets accessibility. 
“We know that many Australians, particularly those looking to purchase their first homes, are being priced out of major cities, and we also know that this factor won’t be completely aided by federal government incentivisation,” James said.
“Young Australians looking to break into the housing market could consider alternative regions where these government incentives are likely to provide the greatest benefit. What’s more, at the same time, for lenders, these suburbs could represent a key growth market for the new First Home Buyer incentive scheme.”
Outside the housing market, unsecured consumer credit demand rose 18% compared to Q3 2024.
“The spike in BNPL accounts is attributable to the 10 June legislative changes,” James said. “Because this segment is now reporting under the same requirements as other lenders, we are getting a fuller picture of its true reach, therefore I expect this growth to plateau over the next few quarters.”
Equifax also reported that delinquencies remained stable across all credit categories.
“It’s positive to see that increased credit demand has not led to a spike in delinquencies,” James said. “This suggests Australians are managing their financial health and maintaining stability by keeping up to date with their payments, a strong signal of resilience.”
The latest Equifax data reinforces a divided market — rising intent from younger borrowers but growing affordability headwinds.
For brokers, the findings highlight opportunities to:
With first-home buyer demand strengthening and credit conditions stable, brokers are well positioned to connect motivated borrowers with lenders and solutions that fit their financial goals.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
