Australian mortgage demand falls sharply despite house price drops

Summarised from 2 outlets · Updated 15 Oct, 04:02 · Archive

Mortgage demand in Australia fell 19.2 per cent year-on-year in September, the sharpest decline since 2022, even as house prices slipped.

Mortgage demand in Australia fell 19.2 per cent year-on-year in September, marking its sharpest decline since December 2022. New home loan applications dropped 22.1 per cent compared to the same period a year earlier, according to data from credit reporting body Equifax. This occurred despite house prices across the country slipping 1.1 per cent.

Younger people bore the brunt of the downturn. Mortgages for 18-25 year-olds fell by a quarter, whilst those for 26-35 year-olds slumped 22.5 per cent. Equifax chief solution officer Kevin James said Australian households were taking a decisive step back. He cited strict serviceability testing, higher interest rates and spiralling living costs as key factors driving first home buyers away.

Average first home buyer mortgage sizes remained at record levels of $743,000, meaning baseline property prices stayed high despite recent market dips. James said there was no quick fix to the problem. 'For many prospective entrants, bridging the deposit and repayment threshold is likely becoming increasingly difficult without institutional or familial support,' he said.

How it is being reported

• Mortgage demand slump deepens despite price dropThe housing sector continues to show signs of strain as mortgage demand and new home loan applications plummet, new data shows.Perth Now · 15 Oct, 03:26
• Mortgage demand slump deepens despite price dropThe housing sector continues to show signs of strain as mortgage demand and new home loan applications plummet, new data shows.The West Australian · 15 Oct, 03:26

In this story: Australia · Equifax · Kevin James

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