Equifax’s latest Consumer Market Pulse for the December quarter of 2025 has revealed mortgage inquiries jumped 12.3 per cent year on year, capping a chaotic finish to the year in which households also leaned harder on credit cards and personal loans.

The report released on 23/02/2025 shows for the last quarter of 2025 that inquiries had reached a near five-year high.

The Equifax data suggested borrowers moved quickly in the final months of 2025 to secure loans prior to interest rate increases.

The upswing was also on the back of the expanded Government 5% First Home Buyer deposit scheme, which became available from October.

The demographic split of borrowers shows that Gen X borrowers (ages 46-55) recorded the strongest mortgage demand growth at 13.6% year on year, while ‘upgraders’- householders increasing their mortgage to trade up or fund renovations- led the purpose activity with a 16% annual rise.

First home buyers remained a force with inquiries up 11.2% compared with Q4 2024. Refinancers rose 9.6% as borrowers continued to reshuffle loans in search of sharper rates and manageable payments. 

Arrears in mortgages by volume of borrowers held steady for the year, however the total dollar value increased by 6.8% year on year in Q4.

With higher home prices pushing buyers into larger loans with heavier repayment responsibilities, the average loan size in late delinquency has climbed by 8.4% from $371k to $403k

Older borrowers are also emerging as a key pressure point, with Baby Boomers (aged 66 and over) recording the fastest increase in arrears value, up 14.6 per cent over the year. 

Unsecured Credit demand has also increased during this time. Overall demand has climbed 5.9%. A 15.5% spike in credit cards and 8.9% in personal loans, the only decline being in car loan enquiries. (-5.4%)

There was a surge in demand from Gen Z’s (18-25 year olds ) – 23.2% the strongest growth in 3 years for this group. Unfortunately, this group has also had a 28.8% jump in arrears, reinforcing signs that younger adults are increasingly using cards to manage everyday expenses.

In response, lenders appear to have quietly tightened the screws.

Equifax reported that the average limit on new credit cards fell 8.3% year on year, while average limits for personal loans dropped 3.9%.