iscover 
Data published by credit reporting bureau Equifax found that personal loan demand rose 1.3 per cent year on year in August, returning to positive growth after two consecutive months of decline.
The increase, however, was driven largely by older borrowers, with demand among Australians aged 56 and over rising 14.3 per cent, while demand among 26–35-year-olds fell 3.3 per cent.
The divide was similar in the auto loan market. Here, demand fell 2.1 per cent nationally, but rebounded from the 7.4 per cent YoY fall in July 2026.
Demand among 26–35-year-olds declined 3.4 per cent, while demand among borrowers aged 56 and over was broadly flat, edging up 0.2 per cent.
The broader trend is being seen across consumer credit, with credit card demand also returning to growth in August, driven largely by the 56-plus cohort.
Equifax said Australians aged 18–35 were continuing to pull back across the credit spectrum, while the 56-plus cohort was driving growth across unsecured credit and mortgage refinancing with a different lender.
Kevin James, chief solutions officer at Equifax, said the figures showed consumers were adjusting to a sustained higher interest rate environment, with households reassessing their financial commitments and seeking to maintain greater flexibility.
“Consumers still appear to be apprehensive, with households appearing to be actively re-evaluating their commitments, choosing to hold off on taking on massive new capital obligations while using short-term and unsecured credit to maintain household flexibility,” he said.
“Growth appears to be driven almost mostly by the older generations. This cohort, which typically holds greater housing equity and lower relative leverage, may be drawing on credit facilities for liquidity, reward optimisation, or home improvements.
“Meanwhile, younger Australians under 35 remain firmly in credit retreat, recording declines not only in the mortgage market, but also across unsecured credit such as credit cards and personal loans.”
Mortgage demand mirrors trends
The same trend has also emerged in Equifax’s data on the mortgage market, with younger Australians continuing to pull back from borrowing, while older borrowers remain more active.
Overall mortgage demand fell 14.1 per cent year on year in August, marking the fifth consecutive month of decline. The decline was particularly noticeable among younger borrowers, with demand among 18–25-year-olds falling 21.7 per cent and among 26–35-year-olds dropping 18.1 per cent.
First home buyer demand was also weaker again, falling 20.1 per cent year on year in August, the largest annual decline recorded among first home buyers since 2022.
Queensland and NSW recorded the steepest falls, at 22.6 per cent and 22 per cent, respectively.
Meanwhile, older home owners have remained more active in refinancing. Demand among 56–60-year-olds for refinancing with a different lender increased 13.3 per cent, while demand among those aged over 60 rose 9.2 per cent.
[Related: Business-related insolvency surge fuels personal fallout]
Want to see more stories from trusted news sources?Make Broker Daily a preferred news source on Google.
