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What is the average Australian home loan amount?

What is the average Australian home loan amount?

According to the Australian Bureau of Statistics (ABS), the average home loan amount in Australia as of December 2020 is about $728,500, which may seem like a lot. But you must remember that the state and capital city you reside in is an important factor that determines the property values, which in turn influences the average Australian home loan.

Average home loan size by state

As of December 2020, the highest average home loan amount Australia is in New South Wales and is estimated to be approximately $939,700. In comparison, the average home loan amount in Victoria is around $785,000. The lowest average Australian home loan debt amount is about $429,400 in the Northern Territory, which is over $500,000 lower than the average for New South Wales (NSW).

What is the average home loan interest rate in Australia?

There is no single average interest rate for a mortgage, as these frequently vary, based on the type of loan and the borrower’s financial situation. For example, according to the Reserve Bank of Australia (RBA), the average variable interest rate for owner occupier mortgages in 2021 was 3.12 per cent for outstanding loans, and 2.78 per cent for new loans (such as for first time buyers). Fixed rate mortgages and investment home loans may have different average interest rates. 

Knowing the average interest rate for certain types of home loans can give you a better idea of which mortgage lenders are offering low rates in comparison, though it’s important to consider more than just the interest rate when selecting a home loan. 

How much will my mortgage repayments cost?

Your mortgage repayment is based on several factors, which include the loan amount, your interest rate, and the loan term. Before you decide to avail of a mortgage, you must understand the monthly amount you will have to make towards its repayment. Manually calculating your home loan repayments may seem daunting, but using an online calculator will make it easier.

How to use an online calculator to determine your monthly repayment

An online calculator can give you an estimated amount you would have to make as a monthly repayment, based on various loan amounts, interest rates, and loan terms. This can help you to work out what you can afford, so you can make your mortgage repayments on time and minimise the risk of financial distress.

Average home loan rates  inAustralia are currently at historically low levels, which may not remain the same over a long time. Calculating your repayments based on the average variable home loan rate in Australia may help you make an informed decision when comparing home loans, included fixed rate home loans.

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