What is the average new mortgage in Australia?
28 Feb 2024House prices in Australia have risen significantly in the past several years, with the record low interest rates of 2021 contributing to a property purchasing boom across our major cities. You may then be wondering how yours stacks up, and if you’re looking to buy, you may be curious as to what you might be in for. So what is the average mortgage in Australia?
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 still on the rise in Australia, 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 continually rising. 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 home loan in Australia is $624,383. The state with the largest average home loan size is New South Wales, coming in at $785,405 for the average borrower. The ACT is next, with an average loan size of $622,204. Here’s how the numbers shake out state by state:
Average New Home Loan Size For Owner-Occupiers Across Australia (December 2023)
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| Average Home Loan Size | |
| New South Wales | $785,405 |
| Victoria | $613,018 |
| Queensland | $572,439 |
| South Australia | $519,478 |
| Western Australia | $509,275 |
| Tasmania | $462,661 |
| The ACT | $622,204 |
| Northern Territory | $437.572 |
| Australia | $624,383 |
Source: www.canstar.com.au. Average loan size based based on ABS Lending Indicators, December 2023, 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 and principal & interest repayments; excluding introductory and first home buyer only loans.
What are the monthly repayments on an average mortgage?
At its monthly meeting in February 2024, the Reserve Bank of Australia (RBA) held the cash rate at its current level of 4.35%, in a sign that the continued rate rises of the past two years might finally be behind us. When the RBA moves the cash rate, banks and lenders are generally quick to follow, so the past two years of cash rate rises have also seen a rise in home loan variable rates.
Economists at Australia’s big four banks are predicting that we may see cuts to the cash rate by the end of the year. This means that we may see banks and lenders in turn cutting their variable rates, giving a little breathing room to home loan borrowers. Canstar research crunched the numbers based on an average variable interest rate of 6.91% for owner occupier home loans to find out what the average monthly mortgage repayment might look like in each state.
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| Average Monthly Payment (6.91%) | |
| New South Wales | $5,178 |
| Victoria | $4.041 |
| Queensland | $3,774 |
| South Australia | $3,425 |
| Western Australia | $3,357 |
| Tasmania | $3,050 |
| The ACT | $4,102 |
| Northern Territory | $2,885 |
| Australia | $4,116 |
Source: www.canstar.com.au. Average loan size based based on ABS Lending Indicators, December 2023, 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 and principal & interest repayments; excluding introductory and first home buyer only loans.
How have home loans changed over the past 12 months?
According to the latest lending indicators from the ABS, the value of new borrower-accepted loan commitments rose by 11.7% in the year to December 2023. The value of owner occupier loans rose 7.4% while the value of investor loans rose 20.4%.
The next ABS lending data is due out on March 7.
Compare Home Loans (Refinance with variable rate only) with Canstar
If you’re currently considering a home loan, the comparison table below displays some of the variable rate home loans on our database with links to lenders’ websites that are available for homeowners looking to refinance. This table is sorted by Star Rating (highest to lowest), followed by comparison rate (lowest to highest). Products shown are principal and interest home loans available for a loan amount of $500,000 in NSW with an LVR of 80% of the property value. Consider the Target Market Determination (TMD) before making a purchase decision. Contact the product issuer directly for a copy of the TMD. Use Canstar’s home loans comparison selector to view a wider range of home loan products. Canstar may earn a fee for referrals.
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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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