Australian home loan statistics 2023

There are approximately 10.9 million homes in Australia as of 2020 — that’s a lot of real estate and a lot of home loans.
Ava Crawford
Written by
Ava Crawford
Imogen Baxter
Reviewed by
Imogen Baxter
Last updated
February 12, 2024
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dad and daughter kicking ball with puppy in backyard of house with australian home loan

How does your home loan stack up in Australia? For many years, the Australian Dream has been to home ownership, though this has increasingly become harder to achieve. However, that hasn’t stopped Aussies from making the huge financial commitment.

According to the Australian Bureau of Statistics (ABS), there are approximately 10.9 million homes in Australia as of 2020 — that’s a lot of real estate and a lot of home loans.

But from interest rates to house prices to average loan size, there’s a lot to compare and unpack for the property market. So, let’s break down some of the most important home loan statistics to know about Australian housing.

How many Australians own homes?

In 2020, the ABS found that 66% of Australians owned their homes, either with or without a home loan. The average housing cost for homeowners with a home loan was $493 per week. Owners without a mortgage only paid $54.

How can OwnHome help you become a homeowner today?

Similar to the government’s Help to Buy scheme, an OwnHome Deposit Boost Loan provides the opportunity for customers to get a foot on the property ladder without hundreds of thousands of dollars upfront.

Unlike the government’s Help to Buy scheme, OwnHome is designed to help those who can service a traditional mortgage - have a good career and a good salary - but are not able to save the huge sum of money required for a 20% deposit.

Backed by some of Australia’s most trusted financial institutions, OwnHome is working alongside the big players to help you get ahead in the game.

What is it?

With an OwnHome Deposit Boost Loan, all you need is 2% upfront, and we’ll cover the rest of your 20% deposit - so you don’t pay Lenders Mortgage Insurance (LMI)! Plus, once you're ready to start the house-hunt, you'll be supported by our team of expert Buyer's Agents - at no additional cost!

Here's how it works:

  1. Bridge your deposit gap - For just 1-2%* upfront, we’ll cover the deposit you need to unlock your very own 80% LVR mortgage.
  2. Hello, pre-approval - There are no restrictions on which lenders you can pair with your OwnHome deposit.
  3. Find your dream home - Our qualified team of home-buying experts will help you every step of the way—from search to settlement.
  4. Low monthly repayments - You repay your OwnHome Deposit Boost Loan over time, just like you would with your mortgage. Think of it as paying for your deposit while you live in your home. Plus, there are no penalties for paying off your loan early.
Can you afford mortgage repayments but not the deposit? Learn more about a deposit boost loan.
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Who is eligible?

OwnHome exists to help aspiring homeowners who need a boost to their deposit. Key requirements for a Deposit Boost Loan are:

  • Credit in good standing
  • Proof of employment
  • Permanent residency or citizenship for at least one applicant
  • Looking to buy an owner-occupier property
  • Savings to cover 2% (+GST) Starter Fee and government fees

How many new home loans are being taken out in Australia?

According to the ABS Lending Indicators, the value of new loan commitments in Australia during the June 2023 quarter was $24.6 billion total — a decrease from previous quarters.

The lending indicators show that owner-occupiers took out $15.91 billion worth of home loans in June 2023, while investors only received $8.69 billion. About $4.13 billion of owner-occupier loans were for first-home buyers.

Refinancing has become immensely popular, too, mostly to flee the cost pressures of rate hikes. In June 2023, Australians refinanced $20.2 billion in home loans.

Fixed-rate home loans vs. variable rate home loans

Most new housing loans in Australia are variable-rate home loans, valued at $50.5 billion vs. $4.5 billion for fixed rates.

During the pandemic period, the number of fixed home loans in Australia boomed to a significant share of the market — much higher than usual, given how low the official cash rate was. However, since interest rate rises began in May 2022, many of these fixed terms have expired and rolled onto variable rates.

Given that variable mortgages have interest-saving features that fixed-rate loans tend not to, such as offset accounts and free extra repayments, they remain a popular option for Aussies trying to save.

The right option for you, however, will depend on your financial situation. Always read the product disclosure statement (PDS) for disclaimers and key information on what’s required of a specific home loan.

What is the average home loan size in Australia?

The average home loan size in Australia was $580,240 in the June 2023 quarter, the ABS found. However, this varies by state and territory since housing markets like Sydney are much steeper than smaller regions.

Here is a breakdown of the average home loan size by Australian state in June 2023.

  • New South Wales (NSW): $725,048
  • Victoria (VIC): $589,073
  • Queensland (QLD): $514,458
  • South Australia (SA): $473,837
  • Western Australia (WA): $472,690
  • Tasmania (TAS): $442,917
  • Northern Territory (NT): $470,000
  • Australian Capital Territory (ACT): $578,473

Average mortgage rates in Australia

Home loan interest rates are an important mortgage cost to consider. According to the Reserve Bank of Australia (RBA), the average interest rate for owner-occupied variable rate home loans in June 2023 was:

  • 6.24% for outstanding home loans.
  • 5.94% for existing home loans.

There are a few reasons why these interest rates are so different. One of the main reasons is that existing homeowners who’ve been making mortgage repayments for a while will have lower loan-to-value ratios (LVRs), and lower LVRs tend to carry lower interest rates. New home loan borrowers will have higher LVRs, and thus, higher interest rates.

This is because lenders see low-LVR borrowers as less financially risky because they’re borrowing less against the value of their home loan.

Calculate your LVR with the OwnHome LVR calculator.

What is the average monthly repayment in Australia?

Home loan repayments can vary greatly depending on the interest rate and loan amount.

For example, the average Australian making principal and interest repayments on a $580,000 home loan at an interest rate of 6.24% for 25 years would pay $3,822 per month, according to MoneySmart’s home loan repayment calculator.

However, if that same Aussie were to make interest-only repayments for a term instead, their monthly costs would drop.

Comparing home loan features such as the interest rate and loan size can show you how an offer could affect your financial situation.


How can I reduce my mortgage repayments?

The quickest tip to reducing your mortgage repayments is to check whether you are still getting the best rate possible and work out how much it will cost to refinance.

Refinancing can be costly, particularly if you do not have enough equity in your property or if your home loan has high exit fees. Still, it can also score you a significantly lower interest rate, meaning lower fees.

Another way to reduce your repayments in the long run is to make extra repayments where possible (if allowed by your home loan - there may be an extra charge attached), whenever you have some extra money on hand. Though it might feel counterintuitive, making extra payments means your total amount owing will be lower, which equals lower repayments and less interest incurred.

What is loan-to-value (LVR)?

LVR is the loan-to-value ratio of your home loan. That is the amount that you borrow to the amount of deposit that you have paid. In refinancing, this can also refer to your home equity.

Home loans with an LVR of under 80% (a deposit of 20% or greater) tend to be seen as lower risk by lenders, lower interest rates. You tend to have more home loan options with a higher deposit.

Home loans with an LVR of above 80% can do the reverse. It can be harder to gain approval, and interest rates can be higher.

This article is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation, or needs. In particular, you should seek independent financial advice and read the relevant product disclosure statement (PDS), or other offer documents before making an investment decision in relation to a financial product (including a decision about whether to acquire or continue to hold).
Prepared by OwnHome Services Pty Ltd ACN 664 492 059. This information does not take your personal objectives, circumstances or needs into account. Always read the disclosure documents for products and services before deciding on a product or service, and consider seeking independent legal, financial, taxation or other advice for your unique circumstances.

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