Loan Size Hits Record
The average size of new owner-occupier home loans has hit a record $626,055, driven by smaller capital city markets.
The latest official lending figures from the Australian Bureau of Statistics show there are record loan sizes in Queensland ($586,627), South Australia ($541,775) and Western Australia ($538,860).
The highest loan size remains in New South Wales ($767,584) although that is almost $35,000 below its January 2022 peak.
In Victoria ($601,891) the average loan size is almost $50,000 below its peak of 2022.
RateCity.com.au research director Sally Tindall says maximum borrowing capacity has dropped in recent years as a result of rising interest rates.
“It’s astounding to think owner-occupiers are, on average, taking out larger loans than ever before despite the fact the cash rate is sitting at a 12-year-high,” she says.
Loan sizes in the smaller capital cities have been rising in line with those cities hitting record-high property prices. The total value of new housing loans in May was $28.8 billion.
