What is the average new mortgage in Australia?
With interest rates potentially rising in 2026, you may be wondering – what is the average mortgage in Australia and how does yours stack up?
06 Jan 2026
With interest rates potentially rising in 2026, you may be wondering – what is the average mortgage in Australia and how does yours stack up?
A home is likely to be one of the largest purchases you’ll ever make, and when it comes to purchasing one, you’ll likely need to save 20% of the purchase price for a deposit, in order to avoid costly lenders mortgage insurance (LMI). With house prices in Australia well above where they were even five years ago, the amount that you’ll need to save for a deposit, and the amount you’ll need to borrow from a bank or lender, is likely to be significant. Against the backdrop of the ongoing cost of living crisis, saving for a house deposit may be more challenging for Aussie borrowers than ever.
What is the average mortgage in Australia?
According to the latest lending indicators from the Australian Bureau of Statistics (ABS), the average loan size for owner occupier dwellings in Australia is $694,000, up from $678,000 in the previous quarter. The state with the largest average home loan size is New South Wales, coming in at $828,000 for the average borrower. Queensland is the second highest state or territory, with an average of $687,000 for new dwellings.
It’s important to note that the ABS recently switched from monthly to quarterly reports, and the most current figures, for the September quarter, were released this November. These figures represent loans taken out for the purchase of new and existing homes, as well as for construction of new ones. Here’s how the numbers currently shake out state by state:
Average New Home Loan Size For Owner-Occupiers Across Australia (September Quarter 2025)
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| Average Home Loan Size | |
| New South Wales | $828,000 |
| Victoria | $647,000 |
| Queensland | $687,000 |
| South Australia | $616,000 |
| Western Australia | $633,000 |
| Tasmania | $484,000 |
| The ACT | $628,000 |
| Northern Territory | $481,000 |
| Australia | $694,000 |
Source: www.canstar.com.au. Average loan size based on the latest ABS Lending Indicators for the September 2025 quarter.
What are the monthly repayments on an average mortgage?
The Reserve Bank of Australia cut the cash rate three times in 2025, to its current level of 3.60%.
When the RBA moves the cash rate, banks and lenders are generally quick to follow, and throughout 2025, many banks and lenders announced cuts to their own home loan variable rates in line with the RBA’s movements.
The playing field may well change in 2026, with rate rises predicted this year, but this remains to be seen.
For now, Canstar research has crunched the numbers based on an average variable interest rate of 5.90% for owner occupier home loans to find out what the average monthly mortgage repayment might look like in each state (assuming principal and interest repayments paid monthly over a 30 year term, not including fees or other charges).
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| Average Monthly Payment (5.90%) | |
| New South Wales | $4,911 |
| Victoria | $3,838 |
| Queensland | $4,075 |
| South Australia | $3,654 |
| Western Australia | $3,755 |
| Tasmania | $2,871 |
| ACT | $3,725 |
| Northern Territory | $2,853 |
| Australia | $4,116 |
Source: www.canstar.com.au. Average loan size based on ABS Lending Indicators, September Quarter 2025, using original values. Average rate based on owner occupier variable loans on Canstar’s database available for a loan amount of $600,000, 80% LVR, principal & interest repayments and an average variable interest rate of 5.90%; excluding introductory and first home buyer only loans.
How have home loans changed over the past 12 months?
As of the September quarter, 2025, the ABS lending indicators say that average home loan size in Australia is $694,000. A year ago, in the September 2024 quarter, the average new home loan size for owner occupier dwellings in Australia was $642,000. This means that the average loan size has increased by $52,000 in 12 months.
In the September quarter of 2015, the average loan size for a new owner occupier dwelling was $416,000 across Australia. This means that the average loan is now $278,000 more than it was a decade ago.
This article was reviewed by our Editor-in-Chief Nina Rinella before it was updated, as part of our fact-checking process.
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