Loan Sizes Rising

The average loan size for buyers across Australia grew by 8.4% in the September quarter to reach $661,520.

Mortgage Choice’s September quarter Home Loan Report shows the biggest increase was in Western Australia, which is up 11.8% to $588,010, while South Australia and the Northern Territory are up 10.6%, Queensland is up 9.7%, New South Wales/ACT is up 6.4% and Victoria/Tasmania is up 4.6%.

It says the highest average loan size is now $752,914 in New South Wales and the ACT.

Mortgage Choice CEO Anthony Waldron says a shortage in supply and growing demand is driving prices and therefore loan sizes higher.

The report also shows that investor confidence is improving, with the growth in investment loan values outpacing owner-occupier loans.

The value of investment loans is up in every region, with Western Australia and Queensland leading the charge.

“Current market conditions are encouraging a new generation of investors to enter the market, suggesting the demand for investment properties is likely to remain strong,” Waldron says. 

The findings show a decline in investors looking to sell their investment property in the next 12 months – 23% in the September quarter compared to 31% previous quarter.  

 “Market conditions are driving a shift in investor behaviour, with our research showing a growing number of investors are planning to hold onto their investment property over the next 12 months”.