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What is the average new mortgage in Australia?
With interest rates tipped to fall further in 2025, you may be wondering – what is the average mortgage in Australia and how does yours stack up?
11 June 2025
With interest rates tipped to fall further in 2025, 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.
Owner occupied
20% min deposit
Redraw facility
Owner occupied
20% min deposit
Redraw facility
Owner occupied
10% min deposit
Redraw facility
Owner occupied
20% min deposit
Redraw facility
Owner occupied
20% min deposit
Redraw facility
Owner occupied
40% min deposit
Redraw facility
Owner occupied
40% min deposit
Redraw facility
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 $660,000, down very slightly from $666,000 in the previous quarter. The state with the largest average home loan size is New South Wales, coming in at $795,000 for the average borrower. Queensland is now the second highest state or territory, with an average of $641,000 for new dwellings.
It’s important to note that the ABS recently changed the scope of its methodology from borrower accepted loan commitments for ‘housing’ to ‘dwellings’, which represents ‘construction of new dwellings, purchase of new dwellings and purchase of existing dwellings. The ABS now reports these figures quarterly, with the current figures, for the March quarter, released in May.
Here’s how the numbers currently shake out state by state:
Average New Home Loan Size For Owner-Occupiers Across Australia (March Quarter 2024)
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| Average Home Loan Size | |
| New South Wales | $795,000 |
| Victoria | $628,000 |
| Queensland | $641,000 |
| South Australia | $591,000 |
| Western Australia | $594,000 |
| Tasmania | $487,000 |
| The ACT | $616,000 |
| Northern Territory | $488,000 |
| Australia | $666,000 |
Source: www.canstar.com.au. Average loan size based based on the latest ABS Lending Indicators for the March 2024 quarter.
What are the monthly repayments on an average mortgage?
At its meeting in February 2025, the Reserve Bank of Australia (RBA) cut the cash rate to 4.10%, the first cut in more than four years, and the first since rates began to rise significantly from mid-2022. The RBA cut rates again by another 25 basis points in May.
When the RBA moves the cash rate, banks and lenders are generally quick to follow, and following the latest cash rate cut, many banks and lenders announced cuts to their own home loan variable rates.
It remains to be seen whether we’ll see more rate cuts in 2025, but Canstar research crunched the numbers based on an average variable interest rate of 6.26% 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 (6.26%) | |
| New South Wales | $4,900 |
| Victoria | $3,871 |
| Queensland | $3,951 |
| South Australia | $3,643 |
| Western Australia | $3,661 |
| Tasmania | $3,002 |
| ACT | $3,797 |
| Northern Territory | $3,008 |
| Australia | $4,068 |
Source: www.canstar.com.au. Average loan size based based on ABS Lending Indicators, March Quarter 2024, 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 6.26%; 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, in the March quarter of 2024, the average new home loan size for owner occupier dwellings in Australia was $609,000, indicating an average increase of $51,000 over the following 12 months.
Cover image source: Elias Bitar/Shutterstock.com
This article was reviewed by our Editor-in-Chief Nina Rinella before it was updated, as part of our fact-checking process.
Owner occupied
40% min deposit
Redraw facility
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