Mortgage Demand Falls 14%: What Borrowers Should Do Now

Equifax's June 2026 data reveals no state or age group recorded positive mortgage growth — here's what that signals for your home loan.

Australian home loan demand has shifted sharply. In June 2026, mortgage enquiries across the country fell 14 per cent compared to the same month last year, according to Equifax's Consumer Market Pulse June 2026 report — and not a single state, territory, or age group recorded positive growth.

For borrowers watching the market, these numbers matter. A retreat this broad signals that households are genuinely changing how they think about debt, and understanding why could help you make a better decision about your own loan.

The numbers behind the pullback

The ACT posted the steepest decline in mortgage demand at 18.6 per cent year on year, followed by Victoria at 15.9 per cent and New South Wales at 15 per cent. Western Australia was the most resilient market, though it still recorded a substantial 8.5 per cent fall — meaning there was nowhere in the country that bucked the trend.

Younger borrowers are pulling back most sharply. Mortgage demand among 26 to 35-year-olds dropped 18.2 per cent, and among 18 to 25-year-olds it fell 17.9 per cent. The decline among borrowers aged 56 and over was more modest, at 5.6 per cent — reflecting that older households typically carry less new debt and hold more unencumbered wealth, insulating them from the immediate friction of current cash rates.

First home buyers showed some of the most dramatic moves. The Adviser reports that FHB demand nationally fell 17.2 per cent, with Queensland first home buyers pulling back 20.8 per cent and Victorian FHBs down 18.2 per cent. Among the 26 to 35-year-old first home buyer cohort, demand fell 20.4 per cent, while FHBs aged 18 to 25 were down 18 per cent.

Kevin James, chief solutions officer at Equifax, said the June data confirmed a genuine shift in household behaviour. "The proactive risk management we observed among Australian households earlier this year has evolved into a far more conservative, defensive approach to borrowing," he said. He described a cumulative "double whammy" — persistent cost-of-living pressures running alongside a sustained high-interest-rate environment — that has led households to "preserve liquidity and actively curb their exposure to new debt commitments."

James also noted that demand from the 26 to 35-year-old age group had "effectively hit a wall, dropping -20.5 per cent" in new mortgage applications — a standout figure even within a broadly negative result.

Refinancing is cooling, but the opportunity remains

It is not just new purchase activity that is slowing. Refinancing is also losing momentum. The Adviser reports that enquiries for refinancing with a different lender fell 15.1 per cent in June year on year, while refinancing with the same lender was down 10.4 per cent. NSW and Victoria led the decline in switching, recording drops in refinance enquiries of 18.3 per cent and 16.6 per cent respectively.

This matters for anyone sitting on an uncompetitive rate. Fewer people searching for a better deal does not mean better deals have dried up — it may simply mean many borrowers are staying put out of caution or inertia. But the opportunity to save through refinancing can be significant for those who act, particularly on loans that have not been reviewed in the past 12 to 18 months.

The Equifax June data also showed softening beyond mortgages entirely. Credit card demand fell 2.8 per cent — the third consecutive monthly decline, a pattern Equifax said it had not seen "play out in the market since 2022." Personal loan enquiries turned negative for the first time in 18 months, slipping 1 per cent.

The 56-plus demographic was the lone bright spot, still showing modest positive growth in auto loans and personal loans. James said this cohort "generally holds more unencumbered wealth and lower debt leverage," which shields them from rate pressure that is biting harder among younger borrowers.

What to do if you are buying or refinancing

For borrowers, a cooling market can cut both ways. On one hand, reduced competition for property — particularly from investors responding to the May 2026 budget's changes to negative gearing — may make the purchase environment more navigable for first home buyers who have been patient. With fewer investors at auction, owner-occupier buyers may find they face less competition for established dwellings than they have in several years.

On the other hand, higher interest rates are clearly biting across the board. If you are currently on a fixed rate due to roll off, or on a standard variable rate that has not been reviewed in the past year, it is worth checking what you could borrow now versus what you are holding, and whether switching to a more competitive product would reduce your monthly outgoings.

Western Australia's relative resilience in the Equifax figures is also worth flagging. It was the only state to fall by less than 10 per cent, continuing a pattern of outperformance that has marked the WA market for much of the past two years — suggesting that opportunities vary considerably depending on where you are buying.

For now, the June data paints a picture of caution rather than collapse. Demand has pulled back sharply, but that creates conditions where lenders may be more motivated to retain and win customers. For borrowers in a strong financial position, that can mean meaningful negotiating power. It is worth acting on it. You can start by exploring some of the most competitive home loan rates available to see how your current deal stacks up.

Read the full Equifax Consumer Market Pulse analysis at The Adviser.