As property prices hit record highs across Australia, it’s no surprise that new home loan balances are also nudging towards fresh peaks. Today we’ll reveal what the ‘average’ new home loan is in your state, and provide you with some handy tips to help bring down your balance sooner.
High interest rates and a cost of living crunch haven’t stopped home values rising 8% nationally over the last 12 months.
It’s great news for home owners, but not so good for buyers, who may have to take out a bigger loan to fund a property purchase. On the plus side, not everyone is having to upsize their home loan. In some cities, new mortgage sizes are staying pretty still or becoming slightly smaller.
What’s the average in your state?
According to the Australian Bureau of Statistics, across Australia the ‘average’ new mortgage is at a record high of $626,055 as of May 2024. That’s up from $584,607 just 12 months earlier in May 2023.
That means you’d need to be able to make mortgage repayments of about $3,875 per month (assuming that you take out a 30-year principal and interest home loan at 6.3%). However, ABS data shows plenty of variation in new loan sizes in different states and territories. Here’s what’s happening across the country:
NSW – the average new home loan size is currently $767,584, up from $720,029 in May 2023.
VIC – average new home loan is $601,891, slightly up from $598,949 in May 2023 but well below the peak of $651,364 in January 2022.
QLD – the sunshine state’s average new home loan size is $586,627, a solid increase on the May 2023 average of $521,609.
SA – average new home loan of $541,775, a big jump on the May 2023 average of $467,438.
WA – average new home loan of $538,860, up from $472,080 in May 2023.
TAS – the Tassie market has seen very little movement in new loan sizes. The current average is $462,324, just a few thousand dollars shy of the $465,313 average in May 2023.
ACT – the average new home loan across Canberra is $614,242, up from $589,130 in May 2023.
NT – in the Top End, the average new home loan has increased slightly, currently sitting at $437,427 compared to $424,873 in May 2023.
How to potentially whittle away your home loan sooner
No matter where in Australia you are buying a home, managing a home loan can be stressful at a time when interest rates are high. Choosing an offset home loan, for example, can let you put spare cash to work by helping to lower your monthly interest charges. It can also allow you to build up a savings buffer while also reducing the overall interest you pay on the loan, and thus, bring the balance down quicker.
If you are unlikely to have substantial savings, looking for a loan that lets you make small, extra repayments at no additional cost can be a way to pay down the loan sooner, and save on interest costs. Even something as simple as switching from monthly to fortnightly loan repayments could deliver savings on your interest repayments over the course of the loan.
Paying half the monthly amount every fortnight can mean paying the equivalent of an extra month’s repayments each year, helping you forge ahead with the loan without too big an impact on your personal budgets. “What matters is that you speak to us about a mortgage that suits your personal needs. Here at Dnister, we can help you at each step of the way. “ says Dom Cafari (Mobile Manager – Eastern Region).
So if you’ve got your eye on a potential new home – or just want to find out your borrowing capacity so you can start searching – get in touch with the Dnister team today.
Get in touch
Call Dnister today on 1800 353 041 and arrange to speak with a Lending Specialist or book an appointment online.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. In providing you with this information you should consider the appropriateness of this advice with regard to your particular financial situation and needs. We advise that you carefully read our Home Loan Key Facts Sheet and TMD before acquiring a loan product. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent. Applications are subject to Dnister credit assessment criteria. Interest rates are subject to change without notice and should be verified with your local branch. Terms and conditions, including fees and charges, apply. For full details on our products and an analysis of your personal requirements, please arrange for an appointment with one of our friendly lending staff by contacting your local Dnister branch.
