Personal lending hits record levels as cost-of-living pressure builds

New data reported by The Guardian shows Australians are borrowing record amounts through personal loans, with banks issuing $5.1 billion in new personal loans in the first quarter of 2026. The rise points to continued pressure on household budgets as higher living costs, rents and mortgage repayments reduce savings buffers.

Although personal loans are often used for large one-off purchases, experts quoted in the report said the growth can also signal financial stress, especially when borrowers use credit to manage everyday bills or consolidate existing debts.

For the property market, household borrowing conditions remain a key watchpoint. Buyer confidence and borrowing capacity are closely linked to disposable income, interest rates and lender assessment settings. As financial pressure persists, buyers may become more selective and cautious, while sellers may need to align expectations with changing household affordability.

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