Australians are cutting back on personal expenses in hopes of qualifying for a home loan, according to a Finder survey.
The poll of 1,034 respondents conducted in August 2025 found that 18% have reduced personal debt and spending in the past five years to improve their chances of refinancing or securing a home loan. Applied nationally, this represents about 3.9 million Australians.
“Lenders are now examining household spending more closely than ever, meaning everyday expenses – from eating out to streaming subscriptions – can make or break a loan application,” said Sarah Megginson, Finder’s personal finance expert.
She added, “The fact that so many people are cutting back just to refinance highlights how restrictive the credit environment has become. Having equity alone isn’t enough anymore – borrowers need flawless spending records.”
Despite these cutbacks, more than one in three respondents (35%) believe they’ll never be able to afford a home.
Megginson noted that many are delaying major life decisions, such as upgrading vehicles or starting families, to retain or qualify for a mortgage.
“It’s a sobering reminder that home ownership now dictates how – and when – Australians plan their lives,” she said.
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