Australians pull back on spending to afford a home loan: survey

Despite this, 1 in 3 Australians believe that they will never afford their own home.

Australians are slashing on personal spending in a bid to secure a home loan, according to a poll by Finder.

In a survey of 1,034 respondents in August 2025, about 18% said they have reduced their personal debt and slashed their spending to enable them to refinance or be approved for a home loan in the past 5 years.

If applied to Australia’s total population, this is estimated to be equal to 3.9 million people, the survey said.

“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,” said Sarah Megginson, personal finance expert at Finder.

“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,” Megginson said.

Despite these efforts, over 1 in 3 (35%) of the survey respondents said they don’t think they’ll ever be able to afford their own home.

Megginson said some are putting major life plans on hold. These included upgrading a car to even starting a family, just to be able 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 said.