In this article we look at:
The Australian Bureau of Statistics (ABS) publishes regular updates on new home loans from across all states and territories.
We can use some of the published data to calculate the average new home loan, and how those figures may have changed over time.
The main figures we are crunching here are new loans (i.e. excluding refinances) for owner-occupiers buying an existing home (one someone else has already lived in), for people buying a newly built home and for those who want to construct a new home. We use the original data, not the seasonally adjusted figures.
We also use Canstar’s home loan repayment calculator to estimate the monthly repayments on those average new home loan figures.
What is the average new home loan?
The ABS data shows a total of 37,300 new loan commitments were issued in April for people buying a home they want to live in, not including loans for land or alterations, at a total value of about $20.1 billion. That’s a drop in the number of loan commitments of 10.7% on the previous month.
Despite this drop in numbers, the average new loan in Australia for people buying an existing property was $563,554 in April 2021, up 5.7% on the month before.
The average figure for a loan for buying a newly built home was $539,819, up 5.2% on the previous month, and $440,769 for a loan to build a new home, up 1.2%.
Across the nation, Tasmania had the lowest April average for an existing home, at just $382,752. The highest was New South Wales at $708,771.
The average home loan for a newly built home was also the lowest in Tasmania at $370,000 and the highest in New South Wales at $668,856.
The average loan for a new construction was the lowest in South Australia at $375,278, while the highest was the Australian Capital Territory at $603,093.
Average new home loan size for owner-occupiers across Australia (April 2021)
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| Location | Existing home |
Newly built home |
New construction |
|---|---|---|---|
| ACT | $551,920 | $476,531 | $603,093 |
| New South Wales | $708,771 | $668,856 | $523,826 |
| Northern Territory | $397,596 | $287,500 | $473,810 |
| Queensland | $462,590 | $461,149 | $427,478 |
| South Australia | $420,841 | $423,567 | $375,278 |
| Tasmania | $382,752 | $370,000 | $377,632 |
| Victoria | $595,896 | $526,606 | $450,456 |
| Western Australia | $442,324 | $417,273 | $401,975 |
Source: Australian Bureau of Statistics April 2021 lending indicators, released June 2021, using the original data, not the seasonally adjusted figures. Existing home: An existing home that has been previously occupied. Newly built home: A home that has not previously been occupied. New construction: A new home that has yet to be built.
What are the monthly repayments on an average home loan?
Remember these are only average figures, which means some new loans would be higher and some lower, but they are a guide as to what was happening in the property market in April.
So what would be the typical monthly repayment on such new loans?
Here we use Canstar’s home loans repayment calculator to work out how much people would need to repay each month, based on the average new home loan amount for owner-occupiers in each state and territory, according to the ABS data.
The calculations are based on a loan repayment on principal and interest, paid monthly over 30 years at an interest rate of 3.26% based on Canstar’s estimated average variable rate for April, excluding fees and assuming the interest rate stays the same throughout that time.
Estimated monthly repayments on an average new home loan
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| Location | Existing home |
Newly built home |
New construction |
|---|---|---|---|
| ACT | $2,405 | $2,077 | $2,628 |
| New South Wales | $3,089 | $2,915 | $2,283 |
| Northern Territory | $1,733 | $1,253 | $2,065 |
| Queensland | $2,016 | $2,009 | $1,863 |
| South Australia | $1,834 | $1,846 | $1,635 |
| Tasmania | $1,668 | $1,612 | $1,646 |
| Victoria | $2,597 | $2,295 | $1,963 |
| Western Australia | $1,927 | $1,818 | $1,752 |
Source: The calculations do not take into account all fees and charges and the results are an estimate only. Based on a loan repayment on principal and interest, paid monthly over 30 years at an interest rate of 3.26%.
How have home loans changed over the last 12 months?
In April 2020, Australia was in the early grip of the coronavirus pandemic. The average new loan across all categories nationally took a dip mid-year, but loans for existing and newly built properties did start to rise towards the end of the year.
Nationally, the average loan for new builds dropped to a low of $475,240 in June but have picked up and are now their highest for the 12 months since April 2020.
New loans for existing dwellings have also picked up, and after a dip in February, the figure is again on the rise.
It’s new loans for new constructions that have dipped the most over the past 12 months, but even they have continued to rise since January.
The ABS says these figures may have been influenced somewhat by the HomeBuilder grant, which was reduced from $25,000 to $15,000 effective from 1 January 2021, and was closed to new applications from 14 April 2021.
The next ABS lending data is due out on 2 July 2021.
Cover image source: zstock/Shutterstock.com
Compare Home Loans with Canstar
The comparison table below displays some of the variable rate home loan products available on Canstar’s database for first home buyers with links to lenders’ websites. The products displayed are based on loan amounts of $350,000, $400,000 and $500,000 at 95% LVR in NSW, available for principal and interest repayments. The results are sorted by comparison rate (lowest to highest), then by provider name (alphabetically). Before committing to a particular home loan product, check upfront with your lender and read the applicable loan documentation to confirm whether the terms of the loan meet your needs and repayment capacity. Use Canstar’s home loans comparison selector to view a wider range of home loan products. Canstar may earn a fee for referrals.
*Comparison rate based on loan amount of $150,000. Read the Comparison Rate Warning.
*Comparison rate based on loan amount of $150,000. Read the Comparison Rate Warning.
*Comparison rate based on loan amount of $150,000. Read the Comparison Rate Warning.