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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Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.06% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
6.09% p.a.
6.11% p.a.
$3,027
Principal & Interest
Variable
$0
$250
60%
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
 Disclosure
5.69% p.a.
6.16% p.a.
$2,899
Principal & Interest
Fixed
$0
$530
90%
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
 Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

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.

Eqfxdata

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

EQU-home

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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Filters
LenderCar LoanInterest Rate Comparison Rate* Monthly Repayment Interest Type Vehicle Type Maximum Vehicle Age Ongoing Fee Upfront Fee Total Repayment Early Repayment Instant Approval Online Application TagsFeaturesLinkComparePromoted ProductDisclosure
6.57% p.a.
7.19% p.a.
$588
Fixed
New
No Max
$0
$250
$35,278
  • No vehicle age limit
  • No ongoing or early exit fees
  • 1-7 years loan terms. Pay monthly, fortnightly, or weekly
 Disclosure
5.66% p.a.
6.45% p.a.
$575
Fixed
New, Used
No Max
$0
$275
$34,515
6.52% p.a.
6.95% p.a.
$587
Fixed
New, Used
No Max
$0
$350
$35,236
  • A leading Australian Finance Broker with proven experience you can trust
  • We've assisted more than 150,000 customers access over $8 billion in finance!
  • We are the experts at getting the keys in your hands
 Disclosure
5.99% p.a.
7.20% p.a.
$580
Fixed
New, Used
No Max
$12
$250
$34,791
6.24% p.a.
6.59% p.a.
$583
Fixed
New
No Max
$0
$250
$35,000
6.45% p.a.
6.72% p.a.
$586
Fixed
New
No Max
$0
$195
$35,177
6.49% p.a.
6.49% p.a.
$587
Fixed
New, Used
No Max
$0
$0
$35,211
6.50% p.a.
7.74% p.a.
$587
Fixed
New, Used
No Max
$0
$350
$35,219
6.57% p.a.
7.19% p.a.
$588
Fixed
New
No Max
$0
$250
$35,278
Loan amounts from $5k to $100k
  • No vehicle age limit
  • No ongoing or early exit fees
  • 1-7 years loan terms. Pay monthly, fortnightly, or weekly
 Disclosure
6.89% p.a.
8.01% p.a.
$592
Fixed
New
No Max
$8
$400
$35,549
6.52% p.a.
6.95% p.a.
$587
Fixed
New
No Max
$0
$0
$35,236
More car loans
  • Available for purchasing new and demo vehicles
  • $5,000 to $150,000 loan amount
  • Redraw facility available up to $5000/day
  • Required: Good credit history, stable employment history. Aus citizenship or PR.

More details
Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates for car loans and secured personal loans for the relevant amounts and terms are for secured loans unless indicated otherwise. The comparison rates for unsecured personal loans are applicable for unsecured loans only. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning



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