The average new owner-occupier mortgage in Australia has reached a record high of $636,597, and it’s expected to climb further as property prices increase across key states.
Over the past 12 months, the national average loan size has grown by $56,357—equivalent to a daily increase of $154—despite the cash rate being at its highest since November 2011.
According to the latest ABS lending indicator figures, every state recorded an increase in the average loan size this month. Unsurprisingly, New South Wales leads the pack, with the highest average new mortgage at $780,028. While this figure has been rising for the past four months, it still falls short of the January 2022 peak of $803,235.
Queensland, South Australia, and Western Australia have all hit record highs in their average loan sizes for owner-occupiers. Western Australia, in particular, saw an astonishing increase of $93,967 over the past year—a 19.9% rise, or $257 per day.
Lending Activity Rebounds in June
The value of new home loans rebounded in June following an unexpected dip in May.
Overall, new home lending is on the rise, with the total value of new mortgages up 19.1% compared to the same period last year.
Investors are driving this growth, with a 30.2% increase in new home loans compared to June 2023, based on seasonally adjusted figures.
First-Home Buyer Activity Remains Sluggish
In June, 9,947 owner-occupier first-home buyer mortgages were recorded in seasonally adjusted terms.
Although this marks a modest increase of 324 compared to the same time last year, the figure remains significantly lower—nearly half—of the recent peak of 17,162 loans seen in January 2021.