Equifax’s latest Quarterly Consumer Credit Demand Index for the September 2020 quarter shows a near 30% decline in demand for consumer credit compared to September 2019.
The results show a decline in every category, except for home loans, which rose by 16.3% in the quarter compared to a year ago.
Thinking about refinancing to a low-rate, variable owner-occupier home loan? Below are a handful of low-rate loans in the market.
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Variable | More details | ||||||||||||
FEATURED4.6 Star Customer RatingsIncludes Nov RBA Rate Increase | loans.com.au – Variable Home Loan (LVR < 90%)
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loans.com.au – Variable Home Loan (LVR < 90%)
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Variable | More details | ||||||||||||
FEATUREDRefinance OnlyApply In Minutes | Unloan – Variable Rate Home Loan – Refinance Only
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Unloan – Variable Rate Home Loan – Refinance Only
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Variable | More details | ||||||||||||
FEATURED | Up – Up Home Variable (Principal & Interest) (LVR ≤ 90)
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Up – Up Home Variable (Principal & Interest) (LVR ≤ 90)
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- Low rates for purchase and refinancing
- Simple online application process
- No fees, unlimited redraws, 0.10% offset
According to Equifax's data, credit cards suffered the biggest drop of 39.5%, which is not unexpected given the well-publicised fall in credit card use over the pandemic months.
Buy now, pay later, despite reported increases in customers by the likes of Afterpay and Zip, as well as some recent negative press about customers missing repayments, also saw a 13.2% annual decline.
The final two categories - car loans and personal loans - fell by 15.3% and 32.3% respectively.
The Credit Demand index by Equifax measures the volume of credit applications for credit cards, personal loans, Buy Now Pay Later (BNPL), and auto loans.
Mortgage demand includes loans for new properties as well as refinancing.
How each credit category performed in each state. Source: Equifax.
Why did credit demand fall so much?
Kevin James, General Manager Advisory and Solutions at Equifax, said government stimulus measures like JobKeeper and JobSeeker have reduced the need for Australians to rely on credit.
"This is particularly evident when looking at the volume of personal loan applications, which have dropped by around 30% for two consecutive quarters," Mr James said.
"As government stimulus starts to pull back, we anticipate personal loans may experience a revival, particularly among sub-prime borrowers who may not be eligible for other kinds of financing.”
Mortgage demand and applications, on the other hand, increased in every single state, even Victoria, which saw a 1.3% annual increase (the smallest among the states) despite being in lockdown for weeks on end.
Mortgage applications rose by 16.3% on average, led by Western Australia at almost 50% (48.3%).
The ACT also recorded an impressive 31.6% spike, while NSW was up 14%.
According to Equifax, home buyer activity is expected to further strengthen over the next quarter provided the virus remains contained, and interest rates remain low, especially now that Victoria is moving out of stage-four restrictions.
"Historically, movements in Equifax mortgage application demand data has led movements in house prices by around six to nine months," it said.
See also: ANZ says House prices to rise 9% in 2021
Source: Equifax
Victoria actually had the largest decrease among all categories except buy now, pay later, which fell by 24.8% in Tasmania.
For the first time in more than eight quarters, the drop in demand for such platforms extended across every Australian state and territory.
“Despite the subdued interest in Buy Now Pay Later, there have been some interesting movements across generations. In the September quarter, baby boomers had the lowest share of enquiries for BNPL but the highest rate of growth," Mr James said.
"Generation Z accounted for a quarter of all enquiries even though they only made up 5% of the working adult population.
"And digital-savvy Gen Y has shown the largest shrink of any generation."
In Victoria, auto loans declined by more than 42%, and there was less demand generally in the eastern states.
In the market for a new car? The table below features car loans with some of the lowest fixed interest rates on the market.
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Fixed | New | 1 year | More details | ||||||||||
Approval within 24 hoursEarly payout available | New Car Loan - Special (Fixed)
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New Car Loan - Special (Fixed)
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Fixed | New | 1 year | More details | ||||||||||
FEATUREDApproval within 24 hours | Green Car Loan Fixed
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Green Car Loan Fixed
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Variable | New | 99 years | More details | ||||||||||
New Car Loan (Home Owner) | |||||||||||||
Fixed | New | 2 years | More details | ||||||||||
New Vehicle Fast Loan Low Rate | |||||||||||||
Fixed | New | 99 years | More details | ||||||||||
APPLY ONLINE | New Car Loan
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New Car Loan
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Variable | New | 1 year | More details | ||||||||||
New / Demo Car Loan (Variable) | |||||||||||||
Fixed | New | 1 year | More details | ||||||||||
New / Demo Car Loan (Fixed) | |||||||||||||
Fixed | New, Used | 99 years | More details | ||||||||||
New or Used Car Loan Special | |||||||||||||
Fixed | New, Used | 7 years | More details | ||||||||||
No ongoing fees | |||||||||||||
Plenti Car Loan (Refinance) | |||||||||||||
Variable | New | 99 years | More details | ||||||||||
New Car Loan (Non-Home Owner) | |||||||||||||
Fixed | New, Used | 99 years | More details | ||||||||||
Unsecured Car Loan Excellent Credit | |||||||||||||
Fixed | New | 5 years | More details | ||||||||||
Fixed Car Loan (New) | |||||||||||||
Fixed | New, Used | 7 years | More details | ||||||||||
Secured Car Loan | |||||||||||||
Variable | New, Used | 10 years | More details | ||||||||||
Car Loan | |||||||||||||
Fixed | New, Used | 99 years | More details | ||||||||||
Car Loan |

- Redraw facility available up to $5000/day
- Available for purchasing new and demo vehicles
- $5,000 to $150,000 loan amount
- Required: Good credit history, stable employment history. Aus citizenship or PR.

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