Discover the Average New Home Loan in Your State and Tips to Lower Your Balance!

As property prices reach new heights across many cities, new home loan balances are climbing too. According to the latest ABS lending data, the average new owner-occupier loan nationally now sits well above $600,000 — with New South Wales leading the pack, followed by Victoria, Queensland, the ACT and Western Australia. Tasmania and South Australia remain more affordable, but balances there have grown faster than almost anywhere over the past five years.

A bigger balance means every basis point of interest matters more. So what can you actually do about it?

1. Compare properly before you sign. The gap between the sharpest and dullest rates on the market is often more than one full percentage point. On a $600,000 loan that is thousands of dollars a year.

1. Use an offset account. Parking your salary and savings in a 100% offset reduces the balance interest is calculated on every single day, without locking the money away.

1. Pay fortnightly instead of monthly. Twenty-six fortnightly payments equal thirteen monthly ones — an extra repayment every year that quietly cuts years off the loan.

1. Review every two years. Loyalty is rarely rewarded. A regular pricing review, or a refinance if your lender will not move, keeps you at the sharp end of the market.

1. Round up your repayments. Rounding a $2,870 repayment to $3,000 barely registers month to month but compounds dramatically over the life of a loan.

Not sure where your loan sits against the market? Our team will run a free comparison across 45+ lenders — and our broker fees are free to you.