What is the Average Mortgage in Australia Now?

Ever wondered how your mortgage compares to the national average? From first home buyer loans to investor mortgages, here’s what a typical Australian home loan looks like.

When it comes to mortgages, just like houses and shoes, there’s no ‘one size fits all’ option. Your mortgage will likely be a reflection of your homeownership journey, family status, financial situation, and preferences. 

However, we do know what the average, new Australian home loan looks like (as of September 2024). Let’s flesh it out.

What’s an average owner-occupier home loan?

_{Repayment amount assumes a 30-year home loan term and a 6.3% p.a. interest rate.}

Here’s how the typical new owner-occupier home loan has changed over the years:

Those figures cover all types of owner-occupier home loans, whether they’re used to refinance an existing mortgage, fund new home construction, or purchase a property outright.

Historically, owner-occupier loans have dominated Australia’s mortgage market, outpacing investor home loans year after year.

Aussie mortgage borrowers have also been more partial to variable interest rates rather than fixed rates. That was the case even in the ultra-low rate environment of the pandemic, with lenders writing more than $5 billion more variable rate home loans than fixed rate home loans in June 2021, despite the average three-year fixed rate hovering at 2% p.a.

Does your home loan interest rate stack up?

Is the interest rate on your mortgage higher than the market median? Check out some of the most competitive owner-occupier home loan products:

• Worth $540,871

• Has a variable interest rate

• Demands monthly repayments of $2,839.57

_{Repayment amounts assume a 30-year home loan term and an interest rate of 6.3% p.a.}

Here’s how the average mortgage taken out by a first home buyer has changed over the years:

Buying your first home is arguably harder than ever. Recent ABS analysis of data from three consecutive Censuses reveals homeownership among young Australians is on a steady decline.

Just 55% of Millennials aged 25 to 39 owned a home in 2022 far – behind the 62% of Gen Xers and 66% of Baby Boomers who were homeowners at the same age. The gap highlights how dramatically the housing landscape has shifted in just a few decades.

And for those entering the market today, going it alone is increasingly rare. According to the Australian Housing Monitor’s 2024 report, over 40% of first-time buyers since 2020 relied on financial help from family – the so-called Bank of Mum and Dad. Meanwhile, a third of first-home buyers turned to the federal government’s Home Guarantee Scheme (HGS) in the 2023-24 financial year.

While some buyers likely tapped into both support systems, the data underscores just how critical these programs have become in bridging the affordability gap.

What’s a typical Australian investor mortgage?

• Worth $654,055

• Has a variable rate of 6.5% p.a.

• Demands monthly principal and interest repayments of $4,134.07

• Or monthly interest only repayments of $3,542.80

_{Repayment amounts assume average variable interest rate and a 30-year home loan term.}

Here’s how the average investor home loan has shifted in recent times:

Investment property lending roared back to life in 2024, shaking off the slump seen in 2022. According to ABS figures, nearly $11.7 billion worth of investor home loans were approved in September alone – perhaps a signal investor confidence is on the rise.

But securing an investment property loan isn’t without its quirks. These loans typically come with higher interest rates than owner-occupier mortgages, thanks to the added risk they’re assumed to pose to lenders.

On the flip side, investor loans can often offer greater flexibility, such as interest only repayment periods. This setup allows investors to hold onto more cash by temporarily skipping principal repayments – a feature owner-occupiers can request but may struggle to secure as easily.

What is an average home loan in your state or territory?

While the figures above represent national averages, what’s normal in your neck of the woods might be notably different.

For instance, NSW borrowers tend to take on the largest home loans, likely due to property prices in Sydney and other parts of the state outweighing those in small capital cities and regional markets.

Here’s what a typically-sized home loan looks like in each state and territory:

How does an average mortgage compare to the median house price?

There’s no exact data on the size of the deposits or equity held by home buyers and homeowners across Australia. However, we can compare the average mortgage size to the median house price across various regions.

Below, we have contrasted the typical mortgage in each state and territory against the median property price in the capital city of that state and territory. As the data isn’t reflective of the exact same areas, it can really only be used a guide:

_{Source: ABS}

_{*Average mortgage size data for the NT and the ACT is related to August}

_{Image by Steve Doig on Unsplash}