What is the average Australian home loan amount?

According to the Australian Bureau of Statistics (ABS), the average home loan amount in Australia for owner-occupier dwellings as of May 2023 is about $584,836, which may seem like a lot. But you must remember that the state and capital city you reside in is an important factor that determines the property values, which in turn influences the average Australian home loan.

As of May 2023, the highest average home loan amount in Australia is found in New South Wales, followed by Victoria and the ACT.

The average loan sizes for owner-occupier dwellings (including construction and the purchase of new dwellings and existing dwellings) by state in May 2023 are:

• NSW: $720,458
• VIC: $599,398
• QLD: $521,574
• SA: $467,471
• WA: $472,092
• TAS: $465,254
• NT: $425,510
• ACT: $588,356

Source: ABS Lending Indicators May 2023, released 3 July 2023

There is no single average interest rate for a mortgage, as these frequently vary, based on the type of loan and the borrower’s financial situation.

For example, here are the average variable interest rates for different types of housing loans as of June 2023:

Source: RateCity.com.au research as of 30 June 2023

Knowing the average interest rate for certain types of home loans can give you a better idea of which mortgage lenders are offering low rates in comparison, though it’s important to consider more than just the interest rate when selecting a home loan.

Before you decide to apply for a mortgage, you must understand the amount you will have to make towards its repayment each month, fortnight, or week.

Your mortgage repayment is based on several factors, which include the loan amount, your interest rate, and the loan term. Additionally, you may choose to make interest-only repayments for a limited time, before the loan reverts to principal and interest repayments. Manually calculating your home loan repayments may seem daunting, but using an online calculator will make it easier.

Keep in mind that as well as paying interest charges on your mortgage, you’ll also likely have to pay fees and other charges that could affect the cost of your home loan.