Australia’s mortgage market saw a sharp increase in activity at the end of 2025, with government incentives fuelling demand among new entrants.
According to Equifax’s Global Credit Trends FY25 Report, there were 11.2% more first‑home buyers in Q4 2025 compared to Q4 2024. Rising property values in metro areas are pushing both first‑home buyers and property investors toward regional markets, creating new lending opportunities outside traditional city centres.
Equifax noted that investor‑backed mortgage accounts outside city centres grew by 18.27% in 2025, far outpacing the 6.62% increase in primary residence mortgages. Queensland led the expansion with a 36% increase compared to 2021, while New South Wales and Victoria also recorded growth of 8% and 4% respectively.
This shift opens up fresh business for brokers in regional markets, but it also brings added risk.
Equifax cautioned that “Volatility of regional markets, particularly those with high exposure to single‑industry risks, means loan providers should consider localised risk assessment policies.”
The report also notes that government interventions can cause sudden surges in application volumes, prompting lenders to review assessment frameworks to remain agile.
Equifax highlights that lenders have an opportunity to optimise refinancing strategies in anticipation of higher cash rates, as consumers are likely to seek better interest rates on their home loans.
Finally, delinquency levels in Australia showed early signs of stabilisation at the end of Q4 2025. The report notes that while 90‑plus‑day arrears on consumer credit were flat in volume, the dollar value of those delinquencies was up 6.8% year‑on‑year, compared with Q4 2024, suggesting that stress is becoming more concentrated in larger loan balances.
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