Among new mortgage accounts, borrowing limits grew 6.7% year-on-year in dollar value, indicating that a smaller number of new accounts is underpinning portfolio growth.
Source: Equifax
“The reduction in new market entrants likely reveals that during a trying period of intense economic headwinds, Australians were focused on managing existing financial obligations and mortgage debt in Q1,” James said. “For new mortgage accounts, borrowing limits are growing in dollar amount value up +6.7% year on year, revealing that a smaller number of new accounts are driving portfolio dollar value growth.
“With mortgage lending being often a useful indicator of dwelling price direction, positive growth in mortgage demand could suggest the price cycle is yet to turn down. This outcome would align with previous cycles where dwelling prices remained resilient; historically, the market has maintained a long-term average growth rate of approximately ~6% per annum, even during periods of RBA tightening.”
Arrears broadly stable, though personal loan stress emerging
Mortgage arrears at 90 or more days past due improved in Q1 2026, with a three-basis-point reduction in active accounts and a 2.2% decline in total limits compared with Q1 2025. Credit card delinquencies at the same threshold stood at 0.31%, down nearly 3% in financial value year-on-year, with an notable 10% reduction in arrears among the 18–25 age demographic contributing to the improvement.