Average mortgage records $80,000 increase over the year

by Micah Guiao02 Oct 2021

Across the country, the new average mortgage stands at $580,900 as it saw a 16% increase totalling $80,000 over the past year, according to new data from CommSec.

New home loans went down by 4.3% in August – the biggest fall in 15 months since the onset of the pandemic – but increased 47.4% on the year.

New South Wales and Victoria had the largest number of declines in lending – the same states where the highest average mortgages can be found at $760,800 and $629,300 respectively.

Construction loans have also fallen for the past six months after rising for eight months. This comes after the HomeBuilder scheme ended last April.

On the other hand, investor home loans have continued to rise for the past 10 months. With a 92.2% increase on the year, the current total value of investor loans is $9.5 billion – the highest it has been in six years.

Next to NSW and Victoria, the highest average mortgage is in the Australian Capital Territory at $569,900 and Queensland at $466,000. The lowest average mortgages can be found in South Australia at $397,000 and the Northern Territory at $401,600.

Although mortgages can be influenced by many factors such as interest rates and home prices, the CommSec report noted Reserve Bank of Australia Governor Philip Lowe’s belief that the key to better housing affordability is greater supply of homes and higher wages.

The average mortgage fell by $12,700 in the past month in all states except NSW and Northern Territory, marking the first fall in six months.

The RBA is expected to release more insights Friday in its semi-annual Financial Stability Review.