Australians are still showing a healthy appetite for credit, with demand climbing again in July according to the latest Equifax Consumer Pulse Insights.
Unsecured credit led the charge, jumping more than 20% year-on-year, while secured credit also edged higher, up 5.2% compared to July 2024.
Mortgages were a key driver of this secured credit growth. Demand for home loans rose 6.4% over the year and 3.7% month-on-month, with mortgage applications continuing to build momentum through 2025. So far this year, enquiries are already up 5.3%.
Refinancing remains a big part of the story, making up more than a third of all mortgage demand in July. Conversley, new loan applications dipped slightly compared to last year (down 0.8%), but they’ve picked up month-on-month (+2.9%) and still account for nearly a third of enquiries.
The takeaway? Whether it’s refinancing to get a better deal or chasing new lending opportunities, Australians remain highly active in the credit market, despite ongoing cost-of-living pressures.
In this week’s newsletter, we take a look at why ASIC has turned the spotlight onto credit fixing agencies.
Credit repair and debt management firms have carved a niche in Australia’s mortgage landscape by offering assistance to consumers struggling with poor credit scores or unmanageable debts. These agencies typically help clients dispute errors on credit reports, negotiate with creditors, or establish debt repayment plans, services that in theory, should improve individuals’ access to home loans.
However, these firms have increasingly attracted concerns from regulators and consumer advocates due to reports of questionable practices. ASIC, Australia’s financial watchdog, has launched a comprehensive review of around 100 licensed credit repair and debt management businesses.
Why the review?
The review is motivated by disturbing anecdotes: consumers being advised toward bankruptcy without explanation, missed creditor payments, poor communication, and “no refund” policies on abandoned contracts.
ASIC’s probe aims to assess whether these firms are acting honestly, efficiently, and fairly, particularly toward financially vulnerable clients. It will survey compliance with the National Consumer Credit Protection Act, adherence to credit licensing requirements, and membership obligations under the Australian Financial Complaints Authority (AFCA) .
These concerns are not abstract. As reported, some operators may charge excessive fees, provide minimal or no actual service, or fail to communicate adequately with clients. One consumer received no explanation about payments to creditors; another faced the threat of car repossession due to a firm’s inaction .
ASIC intends to publish its findings in a public report in 2026, potentially followed by enforcement actions. The outcomes should improve transparency, weed out poor operators, and restore trust industry-wide .
Ultimately, this review is a critical step toward ensuring that credit repair providers in Australia deliver genuine value and don’t take advantage of consumers, particularly those already in financial distress.
Variable
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR.
1 Year Fixed
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR. At the end of the three year fixed period, the borrowers interest rate will revert to a standard variable rate for the life of the loan.
