Refinancing has surged to a four-year high, with Australians refinancing 618,966 loans in the year to September 2025, according to Money.com.au’s latest Mortgage Insights Report.
Over the same period, new loans totalled 537,326, meaning refinancing now exceeds new lending by 81,640 loans – a reversal of almost 180,000 loans compared with 2021.
The lift in refinancing comes amid a broader rebound in mortgage activity. Equifax data shows mortgage applications jumped 10.3% in the September quarter – the strongest rise since 2021 – although active mortgage accounts still fell 0.8%.
Owner-occupiers make up 70–75% of all refinancing, reflecting heightened rate sensitivity.
Internal refinancing grew 29% year-on-year – nearly double the 15% growth in external switching – as lenders intensified retention efforts.
New-build, land and construction loans fell 3.5% to 124,359, sitting 38.3% below their June 2021 peak.
Money.com.au property expert Debbie Hays (pictured) said the market continues to narrow.
“When borrowing for new builds continues to go backwards, it’s a clear sign that supply isn’t keeping up, and more buyers are being pushed to compete for existing properties. That inevitably drives prices higher, and with it, the average debt size,” she said.
The shrinking pool of new-build lending has also narrowed the gap between owner-occupier and investor loan sizes.
OO: $674,860 vs investors: $676,797 – now just a 0.3% difference.
Investor loans climbed 9% to 205,533, more than 32% above their September 2023 lows.
Victoria delivered the strongest growth at 13%, underpinned by improving yields and relative affordability.
“The fundamentals are still there in Victoria… particularly across inner and middle-ring suburbs,” Hays said.
Queensland narrowly retains the largest investor share (23.4%), with Victoria at 23.2%.
OO loans rose 3% to 331,793, sitting 9.3% above last year’s lows but still uneven across states.
Queensland led with 5% annual growth and 72,475 OO loans – more than WA and SA combined.
WA was the only major state to record a decline, falling 2%.
First-home buyers fall behind
First-home buyer loans fell 3%, opposite the broader 8% growth among other buyers.
“The expanded First Home Guarantee will give first-home buyers a lift, but only at the margins,” Hays said. “Deposit support helps, but it doesn’t solve the bigger issues of tight borrowing capacity, high prices, and limited new supply.”
Equifax notes that FHB intent is rising – especially among Millennials and Gen Z – but affordability barriers remain the biggest constraint.
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