The average new home loan in Australia has reached an unprecedented $642,121, according to the latest Australian Bureau of Statistics (ABS) data.
The figures revealed that in the face of the highest interest rates in over a decade, the average owner-occupier mortgage has increased by $43,254 over the past year, marking a 7.2% rise. New South Wales continues to lead with the highest average mortgage at $779,239 in September.
Western Australia and Queensland have experienced the highest increases, with average loan sizes jumping by approximately $84,000 and $82,000, respectively, over the past 12 months. This represents year-on-year growth of 17.6% in WA and 15.2% in Queensland.
However, the overall lending landscape has shown signs of moderation. September marked the first decline in new home lending after seven consecutive months of growth, with total lending falling by 0.3% to $30.21 billion. While owner-occupier lending saw a marginal increase of 0.1%, investor lending dropped by 1.0%.
“The average new owner-occupier loan size has hit another record high in September,” said RateCity.com.au money editor Laine Gordon. “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 data also reveals varying trends across states. While NSW, Queensland, and WA recorded increases in average loan sizes, Victoria, South Australia, and Tasmania experienced month-on-month declines. Meanwhile, Tasmania was the only state to show a year-on-year decrease in average loan size, falling by 0.3%.
Refinancing activity showed modest growth in September, with $16.43 billion worth of mortgages being refinanced – a 2.1% increase from the previous month. RateCity.com.au noted this suggested that borrowers are actively seeking better deals rather than waiting for potential rate cuts from the Reserve Bank of Australia.
The total value of new lending remains significantly higher than last year, up 18.9% year-on-year, with investor lending showing particularly strong growth at 29.5%. However, the September decline in overall lending could signal a turning point in the market.
This development comes at a time when interest rates are at their highest level since November 2011.
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