Australians continued to display a strong appetite for credit in July, according to the latest Equifax Consumer Pulse Insights.
Total unsecured credit demand jumped +20.2% year-on-year, while secured credit demand rose +5.2% compared to July 2024.
Mortgage demand was a key driver, rising +6.4% year-on-year and up +3.7% month-on-month. Equifax also reported mortgage applications have accelerated across the past few months, with enquiries up +5.3% year-to-date.
“The RBA’s decision at the start of July to hold the interest rate didn’t dampen consumer appetite, with mortgage demand continuing to grow in July,” said Kevin James (pictured), chief solution officer at Equifax.
“With another rate cut announced in August, and commentators predicting up to three more cuts in the foreseeable future, we expect this trend to continue unabated.”
The insights were released just as the Reserve Bank delivered its third rate cut of 2025, lowering the cash rate by 25 basis points to 3.6%. The decision, driven by easing inflation and a still-tight labour market, is expected to further support borrowing demand in the months ahead.
Refinancing made up 36.2% of total mortgage demand during July, while new mortgage originations dipped -0.8% year-on-year, although they lifted +2.9% month-on-month and still account for 30.96% of all enquiries.
“Refinancing continued to make up the largest portion of mortgage enquiries in July as homeowners take advantage of the falling rates to get a better deal on their home loans,” James said.
“Interestingly, new mortgage originations experienced a small year-on-year decrease of -0.8% in July, which could be reflective of the ongoing challenges faced by first-home buyers – despite their appetite to get onto the property ladder and increased borrowing power, many are still struggling to make inroads as the property market heats up, particularly in major metropolitan areas.”
Demand for personal loans rose +17.6% year-on-year, while credit card applications increased +7.3%. Both categories, however, dipped month-on-month, down -3.9% and -5.4% respectively.
Buy Now Pay Later (BNPL) recorded the sharpest annual growth, with demand surging +56.2% year-on-year and +28.5% year-to-date. Still, BNPL applications fell -7.3% month-on-month, which Equifax noted could be linked to new regulations introduced on 10 June 2025.
Auto lending weakened slightly, with applications -0.5% lower year-on-year and down -6.5% month-on-month, reflecting softer consumer spending in vehicle finance.
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