Rate hikes and tax reforms slash mortgage demand

Mortgage demand has fallen sharply following this year’s tax reforms and rate hikes while hardship has climbed, according to new data. The data has spotlighted average mortgage inquiry values have declined across major capitals and financial hardship requests rose, while also highlighting new accessible hotspots as potential buyer opportunities. The Q2 2026 analysis by Equifax Australia into consumer credit trends spotlights how households are navigating the year’s changing economic conditions. In the two months following cash rate increases in March and May, alongside tax reform changes toward negative gearing and CGT discounts, the data shows that mortgage demand in Australia has swung from +3.7 per cent annual growth pre-reform to a 12.5 per cent contraction post-reform. This shift was also reflected across major borrower segments with First Home Buyer inquiries falling 15 per cent year-on-year during the post-reform period. MORE: ‘Surplus’ govt land dumped in housing shake-up Average demand change by credit type vs. previous year. Source: Equifax Australia The cooling effect extended into general borrowing, with credit card demand declining a further 4.8 per cent. It had droppe...