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What is the average mortgage around Australia?
Australia’s first home buyers have been taking out bigger home loans, with average loan sizes reaching all-time highs in most Australian states and territories.
According to data from the Australian Bureau of Statistics (ABS) released last week, the average loan size for an owner occupier dwelling (including the construction and the purchase of new dwellings and existing dwellings) rose by 2.8% to a record high of $618,729 in January 2022.
Around Australia, New South Wales remains the state with the biggest new mortgages, with the average loan size coming in at $804,675. The Northern Territory had the lowest average new mortgage sizes for owner occupiers, coming in at $400,000.
Average loan sizes for owner-occupier dwellings
State/Territory | December 2021 | January 2022 | Change |
| NSW | $779,770 | $804,675 | $24,905 |
| VIC | $630,412 | $652,187 | $21,775 |
| QLD | $504,055 | $516,686 | $12,631 |
| SA | $441,576 | $457,493 | $15,917 |
| WA | $450,645 | $463,844 | $13,199 |
| TAS | $430,526 | $427,701 | -$2,825 |
| NT | NA | $400,000 | - |
| ACT | NA | $640,827 | - |
| Australia | $602,035 | $618,729 | $16,694 |
Source: ABS Lending Indicators
Perhaps because of these bigger home loans, the ABS also reported that the number of new loan commitments from owner-occupier first home buyers fell 6.9% at the national level and was 32.6% lower compared to a year ago. The biggest fall was experienced in Queensland, with a 16.1% decline, while the Australian Capital Territory saw numbers rise by 25.7%.
What does an average mortgage cost?
According to the Reserve Bank of Australia (RBA), the average variable interest rate for a new home loan in January 2022 was 2.52% per annum, while the average rate on outstanding home loans at the same time was 2.94% per annum.
By comparing this to the average loan sizes from the ABS, you can get an idea of the average cost of a home loan in Australia’s different states and territories for new borrowers:
Average mortgage cost in January 2022
State/Territory | Loan amount | Monthly repayment | Total loan cost |
| NSW | $804,675 | $3188 | $1,147,613 |
| VIC | $652,187 | $2584 | $930,137 |
| QLD | $516,686 | $2047 | $736,888 |
| SA | $457,493 | $1812 | $652,468 |
| WA | $463,844 | $1838 | $463,844 |
| TAS | $427,701 | $1694 | $609,979 |
| NT | $400,000 | $1585 | $570,473 |
| ACT | $640,827 | $2539 | $913,936 |
| Australia | $618,729 | $2451 | $882,420 |
Source: ABS, RBA, MoneySmart. Assumes a 30-year principal and interest home loan with monthly repayments at an interest rate of 2.52%. Assumes that interest rates remain the same for the full loan term and does not include fees or other charges. Estimate for illustrative purposes only.
Borrowers looking for their first mortgage may want to compare the available options before making a decision, remembering to consider the interest rate, fees, features and benefits of each loan. If you need help selecting a mortgage, or calculating if you can afford an average mortgage in your state or territory, you may be able to contact a mortgage broker for help.
Disclaimer
This article is over two years old, last updated on March 8, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
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