The Australian home ownership dream continues to loom large – in spite of increased interest rate pressure from the RBA.
Australians have a love affair with real estate. In fact, owning a home (and maybe an investment property or two) is sometimes thought of as the great Aussie dream. A centrepiece of financial planning and fierce dinner table debates across the country, home ownership is synonymous with stability and financial success.
For most, real estate is the largest single purchase that they will make in their lifetime. Despite heightened pressure, the desire for home ownership shows no signs of slowing down. Today, Australians are being more strategic and proactive in their approach to real estate investment with recent data indicating a surge in the number of Australian’s refinancing their mortgages, seeking better deals, and seeking optimal loan conditions to keep the home ownership dream alive.
In this article, our local Newcastle mortgage brokers look at the most interesting and telling home loan statistics in Australia to get a better idea of the current landscape and provide informed data for those looking to make their mark on the real estate market in 2025.
1. 66% of Australian households are homeowners
According to data from the latest census taken in Australia, almost two-thirds of households in Australia are homeowners (66%). Despite the increased cost of ownership relative to incomes in Australia, the rate of homeowners has remained steady since the mid 1970s where Australia’s home ownership rates hovered between 65-70%.
2. 45% of Australians have a mortgage
According to a 2024 InfoChoice survey, 44.8% of Australians have a mortgage while another 16.6% own a home and have fully paid off their mortgage. This is noticeably different from 2021 ABS data that shows 35% of Australians have a home loan and 32% own a property with no remaining mortgage to pay off.
3. The average weekly mortgage repayment in Australia is $493
ABS data shows that the average weekly mortgage repayment in Australia is $493. This works out to roughly $2136 a month or $25,636 a year. Of course, with house prices highest in Sydney and Greater New South Wales, average repayments are higher than NSW than elsewhere in the country.
4. 60% of home loans in Australia are taken out by couples
It should come as no surprise that the majority of home loans that are taken out in Australia are taken out by couples. Combined earning potential and more borrowing power with lenders means that couples account for the highest number of mortgages in Australia at 60%.
5. 82% of home loans in Australia are used to buy a house
According to the latest data from the Australian Bureau of Statistics, 82% of home loans in Australia were used to purchase a dwelling. While it may seem obvious, there are other reasons that borrowers may look to take out a home loan including renovating, investing, and consolidating other debts. According to the ABS data, 75% of borrowers were taking home loans with the intention of living in the dwelling.
6. The average mortgage in Australia is $642,000
According to ABS data from September 2024, the average mortgage size in Australia is $642k – a number that continues to climb. The previous release had the national average mortgage at $636k.
7. NSW has the highest average mortgage at $779,000
New South Wales isn’t just the most populous state in Australia – it’s also (by the numbers) the most expensive to live and own. According to the latest data from the Australian Bureau of Statistics, the average loan size in NSW as of September 2024 is $779,000 – a rise of $23,000 from September 2023 when the average mortgage was $756,000.
8. The Northern Territory still has the lowest average mortgage size in Australia
As of August 2024, the Northern Territory has the lowest average mortgage size in Australia at $416,000 – an incredible $363,000 less than the average in NSW. This is a sign of property prices dropping in the NT, as the average home loan in August 2022 was $464,000 – showing a drop of $48,000 in two years.
9. The average interest rate on a home loan in Australia is 6.22%
According to the RBA, the average interest rate in Australia for new variable loans sits at 6.22% as of November 2024. With interest rates predicted to drop in early 2025, there’s hope among home buyers and owners that this figure will soon drop.
10. The average length of a home loan in Australia is 25 years
According to the latest data, the average length of a home loan in Australia sits between 25-30 years. Some owners may opt for shorter loan periods if they have the financial capacity to handle higher monthly repayments, while others may look to stretch this loan term to reduce monthly financial pressures at the cost of a longer repayment term.
11. The average first home buyer deposit in Australia is $128,400
Using ABS data and a 20% average deposit as a guide, we can see that the average deposit on a home is around $128,400. However, it is possible to have a smaller deposit if you’re happy to pay LMI or if you can take advantage of something like the Family Home Guarantee which allows eligible buyers to have a deposit of just 2% without having to pay for LMI.
12. NSW has the highest average first home deposit at $156,000
According to the data, New South Wales is leading the way at an average home loan deposit of $156,000. Queensland comes in next at $124k and Northern Territory has the smallest at $83k.
| Avg home loan | 20% deposit | |
| Australia | $642k | $128k |
| NSW | $779k | $156k |
| QLD | $619k | $124k |
| Vic | $614k | $123k |
| ACT | $613k | $123k |
| WA | $559k | $112k |
| SA | $551k | $110k |
| Tas | $458k | $92k |
| NT | $416k | $83k |
13. Refinancing numbers continue to climb amidst interest rate hikes
At the tail end of 2024, ABS that refinancing for home loans had risen by 2.1% but despite this uptick refinancing rates were still lower than at the same time in 2023. However, with RBA expected to announce rate cuts in 2025, there’s a feeling this may inspire homeowners to look at refinancing as a way to chase the best rates available. Refinancing allows homeowners to secure potentially lower interest rates, improved loan terms, or consolidate their debt in an effort to ease the financial stress of home ownership in Australia.
