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AAP
AAP
Business
Annabelle Banfield

THE TRUTH ABOUT: Mortgage demand slump deepens despite price drop - Caught on Camera

Demand for first home buyer mortgages in largest year-on-year fall since December 2022. (James Ross/AAP PHOTOS)

Australians trying to buy their first home are being driven away by strict serviceability testing and higher interest rates, with mortgage demand in its sharpest fall since 2022.

Overall mortgage demand dropped 19.2 per cent year-on-year in September, despite house prices across the country slipping 1.1 per cent, according to data from credit reporting body Equifax.

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