Consumer credit demand fell heavily in the September quarter, although mortgage applications went counter to the trend and grew strongly.

According to the latest Equifax Consumer Credit Demand Index, overall consumer credit applications fell 29.6 percent in the September quarter, compared with the September quarter last year.

Credit card applications were down 39.5 per cent, personal loan applications 32.3 per cent, buy now pay later applications 13.2 per cent and auto finance applications 15.3 per cent.

It was the second consecutive quarter that buy now pay later applications fell.

Mortgage applications grew by 16.3 per cent during the quarter, compared with the September quarter last year.

Equifax said that even Victorian home buyers continued to apply for mortgages during the quarter, despite the lockdown. Mortgage applications were up 1.3 per cent in Victoria in the quarter.

Mortgage applications were up 48.3 per cent in Western Australia, 31.6 per cent in the Australian Capital Territory, 14 per cent in New South Wales.

Equifax’s mortgage demand figures include applications for loans for purchases as well as refinancing.

Equifax general manager, advisory and solutions, Kevin James, said the government’s stimulus measures, such as JobKeeper, have helped cushion the impact of the pandemic for consumers who would otherwise rely in credit.

“As government stimulus starts to pull back we anticipate personal loans may experience a revival, particularly among sub-prime borrowers who may not be eligible for other kinds of finance,” James said.