In December 2025, secured credit demand rose +14.1% year-on-year, with mortgage enquiries up +17.9%. Unsecured credit also increased +5.3% versus December 2024.
Across 2025, mortgage enquiries were up +8.2% on the previous year. December delivered the strongest December mortgage volumes in three years, with QLD, WA and NSW leading growth.
“The Equifax Consumer Market Pulse December data shows that mortgage demand reached a three-year high in 2025, up 17.9% year-on-year, a surge that I see was heavily influenced by both the expanded First Home Buyer (FHB) 5% deposit scheme, and the three cash rate cuts we saw over last year," said Kevin James (pictured), chief solution officer at Equifax.
"The momentum shows FHBs rushing to utilise the deposit scheme, however this trend will likely be sensitive to the cash rate in 2026. If rates hold or drop, we could expect this energy to carry well into 2026; however, any rate hikes could see this stalled.”
Month-on-month, mortgage demand fell -13% in December, with new mortgage originations also down -13.6% from November despite being +17.7% higher than a year earlier.
Refinance enquiries made up +36% of total mortgage demand in December 2025, highlighting strong demand for repricing and restructuring.
James said borrowers are acting early: “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. They aren't waiting to see what happens; they are actively securing a financial position now.”
From a switching perspective, year-on-year refinance gains in new customers were: mutual banks +13%, tier-2 banks +18%, non-banks +40%, big 4 +12%, and fintechs +20%.
For new mortgages, borrowers leaned heavily toward more established brands in December 2025:
James said new borrowers still favour perceived safety.
“We are seeing an interesting divergence in consumer behaviour depending on whether they are buying or switching,” he said.
“For new mortgages, there is a preference for familiar brands, with enquiries for mutuals (+39%) and big-four banks (+27%) surging year-on-year, while tier-2 and fintech lenders saw declines. It seems that when taking out that initial large debt, Australians are gravitating toward perceived safety.”
Refinancers, however, are more open to challengers.
“However, the dynamic flips for refinancing,” James said. “Large non-bank lenders (+40%) and tier-2 banks (+18%) showed significant growth against themselves year-over-year. These lenders appear to be successfully scooping up the switching market, attracting established borrowers who are confident enough to look beyond the major banks for a better deal.”
Unsecured credit continued to grow into year-end:
“December 2025 recorded the highest level of personal loan demand we have seen for a December period in three years,” James said. “With demand 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.”
He warned this reflects deeper reliance on credit.
“However, this isn't just about accessing new funds; it represents a deeper consumer reliance on credit,” James said. “Banking transaction data comparing October 2025 to October 2024 reveals that the average amount spent on credit card payments jumped significantly 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.”
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
