Equifax Quarterly Consumer Credit Insights: June 2025
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Unsecured consumer credit applications increased (+14.2% vs June quarter 2024)
- Credit card applications grew (+13.4% vs June quarter 2024)
- Personal loan applications increased (+8.5% vs June quarter 2024)
- Buy now pay later applications grew significantly (+30.2% vs June quarter 2024)
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Secured consumer credit applications were up (+4.1% vs June quarter 2024)
- Mortgage applications increased (+4.9% vs June quarter 2024)
- Auto loan applications also grew marginally (+0.9% vs June quarter 2024)
SYDNEY – 11 August 2025 – The number of First Home Buyers (FHB) intending to apply for a mortgage has jumped, as interest rate cuts and falling inflation improve affordability and encourage more prospective buyers to start their home ownership journey.
According to the latest Equifax Quarterly Consumer Credit Insights - June 2025, intent to apply for a mortgage among first home buyers has accelerated, increasing 9% in Q2 2025. Enquiries through access seekers, such as mortgage brokers, are strongest in South Australia (+10%) and Queensland (+8.2%).
In a significant milestone, Equifax data also shows that intention to buy is starting to translate into formal mortgage applications. Application demand among first home buyers increased by +6.9% in June vs the same time last year, marking the first growth in demand in 10 months. This surge signals that the confidence boost from lower rates is finally translating into market activity, providing the first concrete evidence for a forecast turnaround and improvement in access for new buyers.
Kevin James, Chief Solution Officer at Equifax, said: “The recovery in mortgage intent and applications among First Home Buyers is encouraging, with demand surging in more affordable capitals like Hobart (+45% in Q2 2025), where growth in average loan amounts is minimal. There is continued weakness in most mainland capitals though, with hopeful buyers remaining largely locked out of expensive markets like Sydney and Melbourne where FHB demand has fallen. This trend is mirrored in regional areas: hubs offering relative affordability like the Central Coast (+20%) are growing, whereas prominent lifestyle markets such as the Gold Coast (-9%) and Sunshine Coast (-17%) are now seeing first home buyer demand fall as prices increase.
“While Australians aged 26-35 remain the most likely to be seeking to buy, we’re also seeing increased activity among the younger cohort of Australians, aged 18-25. This could suggest that government incentives for first home buyers are making a positive impact for these younger consumers,” Mr James said.
Signs of improving confidence undercut by creeping consumer debt
According to Equifax data, the June quarter saw increased consumer demand credit across all product types. This included increases in demand for mortgages (+4.9% vs the same quarter in 2024), credit cards (+13.4%) and BNPL (+30.2%).
However, outstanding consumer debt is also climbing. The dollar value of delinquent accounts is rising significantly across mortgages, credit cards and personal loans (+10.1%, +9.6% and +22.2% in Q2 2025 vs Q2 2024 respectively), even as the rate of delinquent accounts remains stable or improves.
“The increase in the amount of money in arrears indicates that many consumers are struggling to make payments, particularly on personal loan and mortgage accounts.
“This trend, coupled with the fact that the number of accounts in arrears remains stable, shows us that people with larger home loans are disproportionately falling into severe delinquency, reflecting growing financial pressure on households with higher-value mortgages. The same trend among personal loans could be a sign that people who undertook debt consolidation to manage festive spend on credit cards are now struggling to pay off the money owed, prolonging the pain,” Mr James said.
Demand Change Q2 2025
The Equifax Quarterly Consumer Credit Insights measures the volume of credit applications for credit cards, personal loans, BNPL, mortgages and auto loans.
Unsecured credit demand, comprising credit cards, personal loans and BNPL grew in the June quarter, up +14.2% year-on-year. BNPL led the way with +30.2% growth, followed by credit cards (+13.4%) and personal loans (+8.5%).
Secured credit demand, derived from mortgages and auto loans, increased +4.1% in Q2 2025 compared to the same period in 2024. Mortgage demand (+4.9%) and auto loans (+0.9%) both increased year-on-year in the June quarter.
IMAGE 1: Consumer Macro Credit Demand – Quarterly YOY
IMAGE 2: Consumer Credit Applications – By Type (Indexed to Q4 2019)^
Source: Equifax
^The data has been re-indexed from 2019 to account for the recent inclusion of Buy Now Pay Later applications:
Re-indexed data to commence in 2019 (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.
