New Mortgage Applications Decline Amid Rising Interest Rates

Understanding the Slowdown in Mortgage Demand Following RBA's Rate Hikes

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Recent data indicates a significant slowdown in new mortgage applications across Australia, coinciding with the Reserve Bank of Australia's (RBA) series of interest rate hikes.

The latest increase on 5 May 2026 brought the cash rate to 4.35%, marking the third consecutive rise this year.

According to Equifax, new mortgage demand has decelerated sharply, with year-on-year growth dropping from 10.9% in Q4 2025 to just 3.6% in Q1 2026. This trend suggests that prospective borrowers are becoming more cautious, prioritizing debt management over new loan commitments amid rising interest rates and living costs.

For existing homeowners, this environment underscores the importance of reviewing current mortgage terms. Exploring refinancing options may provide opportunities to secure better rates or loan features, potentially mitigating the financial impact of rising interest rates.

Engaging with financial advisors or mortgage brokers can offer personalized insights and strategies to navigate the evolving mortgage landscape effectively.

Published:Sunday, 31st May 2026
Author: Paige Estritori

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Knowledgebase

Inflation:
The rate at which the general level of prices for goods and services rises, eroding purchasing power.

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