10-year analysis: how home loan repayments have surged over the past decade – and what you can do about it

Key points

• Mortgage repayments on the average loan size with the average variable rate have increased significantly – from $2,214 a month in June 2015 to $4,383 in June 2025.

• Home loan borrowers are now paying $71 more a day to cover their mortgage than they were 10 years ago.

• The gap between the average variable rate and the lowest variable rate has also widened – borrowers can save up to $373 by switching to the leading rate.

Australian property prices are booming, loan sizes are ballooning, and over the last 10 years, the average variable interest rate has also risen. Is it any wonder the housing market is notoriously difficult to crack?

Mozo’s 10-year snapshot of Australia’s mortgage market reveals a significant shift in the cost of borrowing, and how much you could save by refinancing your home loan to a lower rate.

A decade ago, the monthly repayment on the average loan size with the average variable rate was $2,214. As of June this year, that repayment amount has jumped up to a staggering $4,383 a month.

In other words, borrowers are now paying $71 more a day to cover their mortgage than they were 10 years ago.

Over the same period, the average new home loan amount has surged by 69%. It went from $389,939 in 2015 and skyrocketed to $659,922 by 2025, according to the Australian Bureau of Statistics (ABS).

While monthly repayments have increased over the past decade, so too has the reward for switching to a cheap home loan.

We examined the difference between the average variable rate and the lowest variable rate in our database over the last 10 years, and found borrowers with a $500,000 loan could save up to $373 a month by shopping around for the lowest rate in today’s market.

That could save you up to $4,476 in your first year.

Back in June 2015, swapping from the average variable to the lowest variable could have only saved you $180 a month.

The amount you could save by switching from the average rate to the leading rate is more than double what it was 10 years ago, but it’s still lower than the peak of 2023, where potential savings were at $476.

Mozo’s finance expert, Rachel Wastell, says while the Reserve Bank of Australia (RBA) is at the start of a rate cutting cycle, it doesn’t mean that lenders will pass on all of the changes.

“After 13 hikes, borrowers were hoping for a bit of relief. But if the banks aren’t moving, you’ll have to move yourself,” says Wastell. “Switching could be the only way to lower your rate and get your budget back on track.”

“Even if rates fall dramatically, that won’t change the fact Australians are now carrying significantly more debt than they were ten years ago. The best way to save on your home loan isn’t to wait for a rate cut, or rely on future cuts, it’s to proactively compare and switch.” 

“Property prices might drop, but average loan sizes rarely shrink in a meaningful way. So if you want to cut costs, switching is still one of the smartest moves you can make.”