James attributed the generational divide directly to leverage. “This older cohort generally holds more unencumbered wealth and lower debt leverage, insulating them from the immediate friction of current cash rates,” he said, noting demand from the 56-plus bracket grew in both auto loans and personal loans.
Western Australia stands apart
Every eastern state recorded double-digit falls in refinance switching, but Western Australia was the most resilient market across the board – down just 8.5% in mortgages, 0.7% in credit cards, and the only state to post growth in personal loans. By contrast, the ACT recorded the sharpest overall mortgage decline at 18.6%, followed by Victoria at 15.9% and NSW at 15%.
James described the pattern as “a real multi-speed economy,” with New South Wales and Victoria leading the decline in refinance switching at 18.3% and 16.6% respectively, while WA’s lower debt-servicing pressure appears to be cushioning demand.
The data points to a widening gap between generations in loan affordability and appetite. With younger cohorts pulling back across mortgages, first home buyer activity and unsecured credit alike, established homeowners in the 56-plus bracket appear to represent a comparatively stable client base for refinancing and equity-based lending in the months ahead.