Australian mortgage holders are favouring certainty over change, with new Equifax figures showing borrowers are far more likely to negotiate with their current lender than move banks.
Overall mortgage demand in March rose a solid 7.9% year-on-year, but applications to upgrade loans with the same lender climbed 12.6%, almost double the growth in refinancing to a new lender at 6.9%. Queensland led the charge on upgrades (up 26.9% year-on-year), followed by Western Australia (up 16.5%).
Looking back a few months, that follows a sharp pick‑up in activity late in 2025, when government incentives helped drive an 11.2% lift in first‑home buyers year‑on‑year in Q4. That surge has helped prime demand now flowing into 2026.
Kevin James (pictured), chief solution officer at Equifax, said the March trends point to a shift in mindset.
“The Equifax Consumer Market Pulse March data appears to suggest that the Australian consumer entered a phase of financial preparedness,” James said, noting the backdrop of rising fuel costs and geopolitical uncertainty.
In practice, the data suggests many borrowers are staying with their existing lender to secure sharper mortgage rates or release equity for renovations, debt consolidation, or family support.
James observed that “the real momentum in March was among those staying put. We saw a notable +12.6% YoY surge in mortgage upgrades with the same lender. This growth rate is nearly double that of refinance switching, suggesting that mortgage holders were prioritising certainty.”
Property investors and owner-occupiers alike may be more open to restructuring than to full-blown lender moves.
First-home buyers remain in the game, with national FHB mortgage demand up 4.3% year-on-year, and applications from 18–25‑year‑olds jumping 11.4%.
James said this shows younger buyers are still trying to enter the market, often with help from parents drawing on their own equity and effectively opening the “Bank of Mum and Dad”.
Unsecured credit trends also matter for brokers monitoring client risk. Personal loan demand surged 9.7% year-on-year, driven by a 26.7% jump among borrowers aged 56 and over, pointing to increased use of debt consolidation to manage rising living costs. Credit card demand grew 5.5%, led again by the 18–25‑year‑old cohort, who appear to be gravitating back to traditional credit products.
Across Australia, the picture is less about retreat from credit and more about reshaping it – with clients seeking predictability in mortgage rates and simpler, more manageable debt structures.
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