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- Average new loan size hits record high, as lending falls in September
Average new loan size hits record high, as lending falls in September
The average new owner-occupier mortgage in Australia is now $642,121 – a new record high, according to ABS Lending Indicator figures out today.
Over the last 12 months, the national average has risen by $43,254, despite the fact the cash rate is at its highest since November 2011.
NSW, Queensland and WA also saw their average new owner-occupier loan sizes rise this month, with NSW unsurprisingly taking out the title of having the largest average new mortgage at $779,239 in the month of September.
That said, with house price growth softening, according to the latest CoreLogic figures, the average loan size may follow suit.
Average new owner-occupier loan sizes
Av. new loan size | Monthly change | Year-on-Year change | |
(Sep 23– Sep 2024) | |||
Australia | $642,121 Record high | $5,913 | $43,254 |
0.9% | 7.2% | ||
NSW | $779,239 | $7,817 | $22,418 |
1.0% | 3.0% | ||
VIC | $614,730 | -$2,147 | $20,575 |
-0.35% | 3.5% | ||
QLD | $619,599 Record high | $15,611 | $81,684 |
2.6% | 15.2% | ||
SA | $551,749 | -$4,185 | $55,162 |
-0.8% | 11.1% | ||
WA | $559,028 | $6,874 | $83,623 |
1.2% | 17.6% | ||
TAS | $458,641 | -$8,416 | -$1,542 |
-1.8% | -0.3% |
Source: ABS Lending Indicators September 2024, released 1 November 2024, original data. Includes construction, new dwellings and existing dwellings but excludes loans for land, alterations and additions. Data for NT and ACT not available. Excludes refinancing.
Since the RBA rate hikes: average national new owner-occupier loan size
Source: ABS Lending Indicators September 2024, released 1 November 2024, original data.
Last 10 years: average national new owner-occupier loan size
Source: ABS Lending Indicators September 2024, released 1 November 2024, original data.
New lending falls in September
The total value of new home loans fell this month, after rising for the previous seven months.
Overall, new home lending has begun to soften, dropping $97.7 million, or 0.3 per cent, in the month, but still up $4.80 billion, or 18.9 per cent year-on-year.
Owner-occupier new lending rose $20.1 million, or 0.1 per cent, in September, while investor lending dropped $117.9 million or 1.0 per cent compared to the previous month, in seasonally adjusted terms.
Value of new home loans approved in September 2024
Value | Monthly change | Year-on-year change | |
TOTAL | $30.21 billion | -$97.7 million | $4.8 billion |
-0.3% | +18.9% | ||
Owner-occupier | $18.64 billion | $20.1 million | $2.16 billion |
+0.1% | +13.1% | ||
Investor | $11.57 billion | -$117.9 million | $2.64 billion |
-1.0% | +29.5% |
Source: ABS Lending Indicators September 2024, released 1 November 2024, seasonally adjusted data.
Refinancing activity ticks up in September
A total of $16.43 billion worth of mortgages were refinanced in the month of June – an increase of $333.9 million or 2.1 per cent from the previous month.
Total value of refinancing
Amount | Monthly change | Year-on-year change | Total since start of hikes (May 22 – Sep 24) | ||
$16.43 billion | $333.9 million | -$2.21 billion | $524.53 billion | ||
2.1% | -11.9% |
Source: ABS Lending Indicators September 2024, released 1 November 2024, seasonally adjusted data.
RateCity.com.au money editor, Laine Gordon, said: “The average new owner-occupier loan size has hit another record high in September.”
“Across the country, the average new owner-occupier mortgage has risen by $43,254 over the last 12 months,” she said.
“In Western Australia the average new mortgage for an owner-occupier is now almost $84,000 more than it was just 12 months ago, while in Queensland the figure has jumped almost $82,000 in a year. It’s incredible to think this has unfolded on the back of 13 rate hikes.
“While there has been seemingly no shortage of buyers prepared to up their bids on property in the key capital cities, new CoreLogic data shows the slowdown in house prices has started to spread.
“The latest ABS figures show the total value of new lending dropped in September, after steadily rising for the previous seven months, and as the heat comes out of the housing market, it might be a sign of what’s to come.
“Refinancing made a small comeback in September, albeit just 2 per cent up, after posting a sharp drop in the previous month. It’s great to see borrowers are not waiting around for an RBA rate cut and instead jumping ship in search of a better deal,” she said.
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Product database updated 21 Nov, 2024
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