Across the survey, prospective buyers were more rate-driven than recent buyers. Some 30% of future buyers said a specific rate would be their signal to apply, compared with 20% of recent buyers, who were more often prompted by life events.
That wait-and-see stance is showing up in lending activity. Equifax data has tracked months of falling mortgage demand, with applications down 14.1% year on year in August 2026, a fifth straight monthly decline, and first-home buyer applications down 20%.
Cotality chief economist Selma Hepp (pictured left) cautioned that holding out for a target rate carries its own cost.
“It’s expensive to buy a home. But so is renting,” Hepp said.
Buyers reshape the loan, not just the budget
Beyond the household budget, Australian buyers are also reworking the loan itself. Some 63% would take a smaller mortgage and 57% would settle for a smaller home, both slightly below the five-market averages of 65% and 59%. A further 58% would pursue a no-cost or smaller refinance to reduce their debt, just above the 57% average.