Australia’s households ended 2025 wealthier on paper, with rising house prices and stronger loan growth setting the scene for more active conversations between mortgage brokers and their clients about equity, borrowing capacity, and refinancing.
ABS figures show total household wealth rose 2.5%, or $453.7 billion, in the December quarter. The value of residential land and dwellings climbed 3.2% ($368.6 billion), contributing 2% points to the quarterly gain in household wealth. Superannuation assets added another 0.3 percentage points.
“Rising house prices continue to be the main driver of growth in household wealth in the December quarter,” ABS head of finance statistics Mish Tan (pictured) said in a media release. “The mean price of residential dwellings was up 2.7% in the December quarter 2025, with strong growth seen in Western Australia, Queensland, and South Australia.”
Recent CoreLogic data, meanwhile, show Australian home values are almost 44% higher than five years ago, adding about $280,000 to the median dwelling value..
The data also show Australians are taking on more housing debt again.
Household borrowing grew 2%, or $64.2 billion, slightly dampening the overall lift in wealth. Total demand for credit reached $142.4 billion for the quarter, led by households at $63.3 billion, followed by private non‑financial businesses and government.
Household demand for credit was roughly double the September 2025 level of $31.4 billion, driven by growth in housing loan balances.
“The December quarter had the strongest growth in housing loan balances since December 2021, with strength across all borrower types,” Tan said.
That points to renewed activity across both first‑home buyers and upgraders despite higher mortgage rates and tighter serviceability assessments.
Policy settings are also playing a role. Tan said recent changes “were reflected in the strength of new loan commitments which are flowing through to the increase in housing loan balances.”
The December quarter saw an expansion of the Australian government 5% Deposit Scheme alongside the launch of the Help to Buy Scheme, giving eligible first‑home buyers more pathways into the market with smaller deposits.
For mortgage brokers, the combination of rising household wealth, higher housing loan growth, and targeted first‑home buyer support suggests a busier year ahead in assessing equity positions, structuring new loans, and helping clients balance opportunity against elevated debt levels and mortgage rates.
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