What is the average size of an Australian mortgage?

According to the Australian Bureau of Statistics (ABS), the average home loan amount in Australia for owner-occupied homes in August 2022 is around $589,141, which might seem like a lot. But you need to remember that the state and capital city you reside in is a big factor in determining property value, which in turn influences the average Australian home loan.

What is the average home loan size by state?

As of August 2022, the highest average home loan size in Australia is in New South Wales, followed by Victoria and Queensland.

The average loan amounts for owner-occupied housing (including the construction and purchase of new homes and existing homes) by state in December 2021 are:

  • New South Wales : $725,335
  • CIV: $623,974
  • QLD: $523,191
  • HER : $461,976
  • WASHINGTON: $469,094
  • CAS: $455,500
  • NT: $464,490
  • LAW: $585,172

Source: ABS Lending Indicators August 2022, published on October 4, 2022

What is the average mortgage interest rate in Australia?

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

For example, here are the average variable interest rates for different types of home loans in September 2022:

Purpose of the loan

Average rate

Owner occupied 5.15%
– Main occupant owner and interests 4.99%
– Owner-occupant interest only 5.49%
Investment 5.34%
– Investment capital and interest 5.23%
– Investment interest only 5.50%

Source: RateCity.com.au research as of September 30, 2022

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, although it’s important to consider more than just the interest rate when selecting. of a home loan.

Compare home loans:

How much will my mortgage payments cost?

Before you decide to apply for a mortgage loan, you need to understand the amount you will have to pay for its repayment each month, fortnight or week.

Paying off your mortgage is based on several factors, including the amount of the loan, your interest rate, and the term of the loan. Additionally, you can choose to pay interest only for a limited time, before the loan reverts to repayment of principal and interest. Calculating your home loan payments manually can seem daunting, but using an online calculator will make it easier.

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

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