Western Australia stood out as the strongest-performing state in June, posting the most resilient mortgage figures nationally at -8.5% and the only positive personal loan growth, at 7.1%, even as Australian mortgage demand overall fell 14% year-on-year, according to Equifax's latest Consumer Market Pulse.
The data shows a clear generational divide behind that national figure.
Borrowers aged 26 to 35 recorded an 18.2% fall in mortgage demand, while 18-to-25-year-olds were down 17.9% – both far steeper than the 5.6% decline among those aged 56 and over. First-home buyer demand fell 17.2%, with Queensland recording the sharpest state-level drop at 20.8%, while Tasmania was comparatively resilient at -9.9%.
Refinancing also softened, with switching between lenders down 15.1% and NSW and Victoria posting double-digit declines of 18.3% and 16.6% respectively.
Equifax chief solution officer Kevin James (pictured) said the shift reflected a more cautious mindset taking hold.
"The Equifax Consumer Market Pulse June data indicates that the proactive risk management we observed among Australian households earlier this year has evolved into a far more conservative, defensive approach to borrowing."
He added that under-35s were "pulling back hard right across the credit spectrum," with demand from the 26–35 age group "effectively hit a wall, dropping -20.5%" for new mortgage applications specifically.
The retreat isn't just showing up in loan applications — household mood has soured too: the Westpac–Melbourne Institute Consumer Sentiment Index fell 2.9% in June to 80.6, among the weakest readings in its fifty-year history, with the share of consumers nominating real estate as the wisest place for savings dropping to just 4.5% — the lowest level since the survey began in 1974.
The caution wasn't limited to home loans. Credit card demand fell for a third consecutive month – a pattern James said hadn't been seen "since 2022" – while personal loan demand turned negative for the first time in 18 months.
James noted the 56-plus cohort remained the exception, "tracking modest growth in both auto loans (+4.6%) and personal loans (+5.3%)," insulated by lower debt levels and greater existing wealth.
James said the state-by-state data "highlight a real multi-speed economy," with Western Australia "barely flinching" on credit cards compared to the rest of the country, while conditions were notably weaker in NSW and Victoria across most categories.
The slowdown isn't confined to Equifax's enquiry data, either. ABS Lending Indicators for the March quarter showed total new loan commitments for dwellings down 6.2% nationally, with first-home buyer commitments falling 4.3% — an earlier but consistent signal of the broader market-wide slowdown Equifax's June figures now confirm.
Get the hottest and freshest property and mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
