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As property prices reach new heights across many cities, new home loan balances are also soaring. Today, we’ll reveal the ‘average’ new home loan in your state and share some handy tips to help you reduce your balance sooner.

Despite high interest rates and a cost of living crunch, home values have risen 8% nationally over the last 12 months. According to CoreLogic, this has added an extra $59,000 to the average Australian home’s value. While this is great news for homeowners, buyers may need to take out larger loans to fund their purchases.

However, not everyone is upsizing their home loan. In some cities, new mortgage sizes are stabilizing or even decreasing.

What’s the average new home loan in your state?

Across Australia, the ‘average’ new mortgage hit a record high of $626,055 in May 2024, up from $584,607 in May 2023. This means you’d need to make mortgage repayments of about $3,875 per month for a 30-year principal and interest home loan at 6.3%.

Here’s a breakdown of average new home loan sizes by state and territory:

  • NSW: $767,584 (up from $720,029 in May 2023)
  • VIC: $601,891 (slightly up from $598,949 in May 2023)
  • QLD: $586,627 (up from $521,609 in May 2023)
  • SA: $541,775 (up from $467,438 in May 2023)
  • WA: $538,860 (up from $472,080 in May 2023)
  • TAS: $462,324 (slightly down from $465,313 in May 2023)
  • ACT: $614,242 (up from $589,130 in May 2023)
  • NT: $437,427 (up from $424,873 in May 2023)

How to potentially reduce your home loan balance sooner:

Managing a home loan can be stressful, especially with high interest rates. Here are some tips to ease the pressure:

  • Choose an offset home loan: Use spare cash to lower your monthly interest charges and build a savings buffer.
  • Make small, extra repayments: Pay down your loan sooner without additional costs and save on interest.
  • Switch to fortnightly repayments: Paying half the monthly amount every fortnight can mean an extra month’s repayment each year, helping you get ahead without impacting your budget too much.

The key is finding a mortgage that suits your unique needs, offering beneficial loan features and a competitive interest rate.

If you’re considering a new home or want to know your borrowing capacity, get in touch with us today. Let us help you navigate the home loan process with ease and confidence.

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