Mortgage Demand Climbs, Yet Affordability Challenges Rise - Equifax Maps First Home Buyer Demand Hotspots and Identifies Opportunity Zones

Equifax Quarterly Consumer Credit Insights - September 2025

• Secured consumer credit applications were up (+8.2% vs Q3 2024)
  • Mortgage applications increased (+10.3% vs Q3 2024)
  • Total active mortgage accounts (-0.8% vs Q3 2024)
  • Auto loan applications decreased (-0.9 vs Q3 2024)
• Unsecured consumer credit demand increased (+18% vs Q3 2024)
  • Credit card applications increased (13.3% vs Q3 2024)
  • Personal loan applications increased (+11.6% vs Q3 2024)
  • Buy Now, Pay Later applications grew significantly (+43% vs Q3 2024)

SYDNEY – 10 November 2025 – Secured and unsecured credit demand soared in Q3 2025, with the latest  Equifax Quarterly Consumer Credit Insights - September 2025 revealing mortgage applications rose by 10.3% vs Q3 2024, the strongest growth seen year-on-year since 2021. In addition, First Home Buyer (FHB) appetite climbed with the largest volume of FHB enquiries seen since Q1 2022.  

However, total mortgage accounts declined year-on-year for the second consecutive quarter, likely driven by an affordability threshold challenge.  Despite these challenges, specific geographies continue to see FHB demand. Equifax data reveals the top five ‘First Home Buyer Demand Hotspots’ for Victoria, QLD and NSW. Defined by the number of First Home Buyer applications and median loan amounts, key ‘First Home Buyer Demand Hotspots’ include:

In tandem with First Home Buyer activity spiking in certain regions across the country, the 2025 iCIRT Consumer Research revealed a significant uptick in property-buying intent, with 67% of Millennials and Gen Z Australians planning to buy, build or renovate in the next 5 years. 

“The Equifax FHB Demand Hotspots show strong interest in established property corridors in Sydney, Southeast Queensland, and Melbourne,” said Kevin James, Chief Solution Officer at Equifax. “While we have seen an increase in property-buying intention, specifically in the Gen Z and Millennial demographic, housing affordability was cited as a primary concern in the 2025 iCIRT Consumer Research. 

It’s important to remember that while First Home Buyers have access to incentives such as the Government’s 5% Deposit Scheme, it is not enough to close the gap for many. With rising house prices demanding higher LVRs, the barriers to entry persist - regardless of the applicant's deposit size or credit quality”.

First Home Buyer Opportunity Zones Beyond Demand Hotspots

While the First Home Buyer Demand Hotspots track areas of surging applications and median loan amounts, Equifax has mapped the intersection of intent versus affordability, revealing “Opportunity Zones” for First Home Buyers. The most affordable suburbs among First Home Buyers by average loan amount and within a 60km radius of their closest capital city include:

“We know that many Australians, particularly those looking to purchase their first homes, are being priced out of major cities, and we also know that this factor won’t be completely aided by  Federal Government incentivisation. Young Australians looking to break into the housing market could consider alternative regions where these government incentives are likely to provide the greatest benefit. 

What’s more, at the same time, for lenders, these suburbs could represent a key growth market for the new First Home Buyer incentive scheme,” added Kevin James.

Credit Cards, Personal Loans, BNPL See Increased Demand

Beyond mortgages it was a positive quarter for most credit products, personal loans recorded their strongest year-on-year growth since 2022 (+11.6%) and credit cards posted a second consecutive quarter of double-digit growth (+13.3%). 

By Now Pay Later (BNPL) saw the largest change this quarter with accounts increasing by 18% and total limits by 24% year-on-year.

Kevin James, Chief Solution Officer at Equifax, said: “The spike in BNPL accounts is attributable to the 10 June legislative changes. Because this segment is now reporting under the same requirements as other lenders, we are getting a fuller picture of its true reach, therefore I expect this growth to plateau over the next few quarters”.  

Equifax data this quarter also revealed that across the board delinquencies remained fairly stable. “It’s positive to see that increased credit demand has not led to a spike in delinquencies.  This suggests Australians are managing their financial health and maintaining stability by keeping up to date with their payments, a strong signal of resilience."

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IMAGE 1: Consumer Macro Credit Demand – Quarterly YOY

Soure: Equifax

IMAGE 2: Consumer Credit Applications – By Type (Indexed to Q1 2020)^

Souuce: Equifax
^The data has been re-indexed from 2020 to account for the recent inclusion of Buy Now Pay Later applications: Re-indexed data to commence in 2020 (previously 2015). Added buy now pay later and auto loan credit enquiries as a separate trendline (previously rolled up into personal loans).

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NOTE TO EDITORS
The Quarterly Consumer Credit Insights by Equifax measures the volume of credit card, personal loan applications, Buy Now Pay Later, mortgages and auto loan applications that go through the Equifax Consumer Credit Bureau by financial services credit providers in Australia. Credit applications represent an intention by consumers to acquire credit and in turn spend; therefore, the index is a lead indicator. This differs to other market measures published by the RBA which measure credit provided by financial institutions (i.e. balances outstanding).

DISCLAIMER
Purpose of Equifax media releases:
The information in this release does not constitute legal, accounting or other professional financial advice. The information may change, and Equifax does not guarantee its currency or accuracy. To the extent permitted by law, Equifax specifically excludes all liability or responsibility for any loss or damage arising out of reliance on information in this release and the data in this report, including any consequential or indirect loss, loss of profit, loss of revenue or loss of business opportunity.