Borrower burden: 3.9 million Australians pull back on spending to secure a home loan
Millions of Aussies are tightening their belts to boost their borrowing power, according to new research by Finder.
A Finder survey of 1,034 respondents revealed 18% – equivalent to 3.9 million people – have reduced their personal debt and slashed their spending to enable them to refinance or be approved for a home loan in the last 5 years.
Sarah Megginson, personal finance expert at Finder, said Aussies were going above and beyond to boost their chance of approval.
"Lenders are scrutinising household spending more than ever, which means everyday purchases – from dining out to digital subscriptions – can be the difference between a loan approval and a rejection.
"Consumers aren't just cutting back on luxuries; many are reworking their entire financial lives to prove to lenders they're a safe bet.
"The fact that so many are cutting back just to refinance reveals how tight the credit environment is. It's no longer enough to have equity, you need spotless spending habits too."
Finder's data shows more than 1 in 3 (35%) Australians don't think they'll ever be able to afford their own home.
Megginson said some are putting major life plans on hold, from starting a family to upgrading a car, in a bid to keep or qualify for a mortgage.
"It's a stark reminder that home ownership now dictates how, and when, Australians live their lives."
Megginson urged Aussies to make sure they were getting the best home loan deal.
"Once you're ready to buy or refinance, make sure you don't pay too much for the loan. Even half a percent can mean thousands of dollars saved every year."
Have you reduced your personal debt and/or spending (e.g. car loans, credit cards, BNPL, Uber Eats etc) to refinance or be approved for a home loan in the last 5 years?
| Yes, I have needed to reduce my personal debt to refinance or be approved for a home loan | 18% |
| No, I have not needed to reduce my debt or spending | 37% |
| No, I have not applied for, or refinanced a home loan in the last 5 years | 45% |
| Source: Finder survey of 1,034 respondents, August 2025 |  |
Methodology
- Finder's Consumer Sentiment Tracker is a monthly recurring nationally representative survey of more than 60,000 respondents.
- Figures in this release are based on 1,034 respondents from August 2025.
- The Consumer Sentiment Tracker is owned by Finder and operated by Qualtrics.
- The survey has been running monthly since May 2019.
Sources
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