Mortgage demand is climbing again as borrowers move to secure finance before any further shifts in mortgage rates, according to new Equifax Consumer Market Pulse data.
Overall secured credit demand rose 5.5% year-on-year in February, with mortgage enquiries up 8.9% compared with the same month a year earlier and 7.3% higher year-to-date.
“The credit landscape in February 2026 reflects a fairly resilient Australian consumer navigating what is a complex economic environment,” Kevin James (pictured), chief solution officer at Equifax, said.
James noted that recent rate movements have “likely been a trigger for consumers to lock in credit and refinancing arrangements now to get ahead of any future rate increases.”
The latest RBA move underlines that risk. The central bank lifted the cash rate to 3.85% at its February meeting in response to re-accelerating inflation and stronger private demand, including in the housing market. Since then, Westpac, NAB, CBA, and ANZ have all updated their forecasts and now expect RBA to raise rates again in March, following recent commentary that inflation is running hotter than earlier projections due to Middle East‑driven oil price pressures.
Refinancing accounted for 34% of total mortgage demand in February. Lenders are hanging onto many existing clients, with refinance upgrades with the same lender up 15.2% year-on-year.
Meanwhile, large non-bank lenders are winning switchers, recording a 44% jump in external refinancing customers. New mortgage originations also increased 3.6% over the year, with Queensland and Western Australia showing the strongest demand growth.
That momentum is now meeting a stricter policy backdrop, with APRA’s new rules from 1 February capping high debt-to-income loans (DTI of six or more) at 20% of new residential lending, which may constrain higher‑DTI refinancing and new borrowing at the margins.
Unsecured credit demand grew 4.3% year-on-year, led by a 13.9% rise in credit card enquiries and a 6.6% lift in personal loans.
“For a seventh consecutive month, demand for credit cards is up and in the double digits,” James said, but pointed out that opened card accounts are stable, indicating “strong credit card churn activity and not activity reflecting a growing portfolio.”
Personal loans are also in focus, with year-to-date volumes up 7% on 2025.
James said, “Personal Loan demand is on an upward trajectory,” driven by customers consolidating higher-cost debts as rates rise and by Buy Now Pay Later providers expanding into personal loans.
In contrast, auto loan enquiries declined 9% year-to-date and 9.4% over the year to February, suggesting some borrowers are delaying vehicle purchases or turning to alternatives such as novated leasing.
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