House prices rose 5.5% in 2023, says PropTrack
Interest rates who? According to property watchdog PropTrack – the research arm of realestate.com.au – Australian housing values grew 5.5% throughout 2023, despite housing affordability plummeting to “its lowest level in decades.”
This defies earlier estimates that property prices would fall this year. In 2022, property prices experienced a downturn due to Reserve Bank rate hikes and inflationary price shocks, but no such slump existed this year. Now, the average home loan size needed to buy has ballooned again.
So what can the numbers show us? And what do home buyers need to know for 2024?
Why house prices went so high in 2023
Strong home buyer interest, population growth, and higher sale volumes primarily drove the impressive capital gains Aussie properties made this year, says PropTrack.
It doesn’t help that the kinds of buyers hunting for homes at the moment aren’t usually affected by interest rate changes: these buyers tend to be on high and/or dual incomes, or can take advantage of family home buying schemes that lower home loan costs.
However, it’s noteworthy that the total number of properties for sale through 2023 remained relatively low, though this isn’t true for every capital city. Sydney and Melbourne, for example, had far more listings hit realestate.com.au than the decade average.
On the whole, though, this limited supply bottlenecked keen home buyers and created intense competition that sellers could use to their advantage.
Supply was also constrained by a lack of new home builds, notes PropTrack. Soaring construction costs has slowed down the development of new houses and units, so what limited property listings existed on realestate.com.au were keenly snapped by busy buyers.
Home value growth didn’t hit all parts of the country equally, either. For instance:
- Capital city prices (6.6%), especially in hot markets like Sydney, rose faster than regional markets (2.8%).
- Nationwide, house prices only increased moderately faster (5.6%) than units (5%).
- Interestingly, units (4.2%) proved more popular than houses (2.5%) in regional suburbs.
Knowing the market you’re buying (and selling it) continues to make a significant difference when it comes to price.
Property forecasts for 2024 home loan borrowers need to know
Economists largely agree that the pace and scope of future RBA rate hikes will slow in 2024, so this is an important trend to note from the jump.
High home loan interest rates eat into borrowing power, especially for first home buyers. But unless inflation takes off again, 2024 is likely to see an even longer interest rate hold than the one in 2023. Buyers who have been waiting for interest rates to settle may have an opportunity next year.
New tax cuts for high-income earners will also come into effect in July 2024, potentially unlocking greater savings. Given that Australian home buyers now need six figure savings for a home loan deposit, this could give these borrowers an edge. The property market has already proved resilient thanks to this group of buyers; they could be the ones to watch in 2024.
That being said, PropTrack still warns price growth will be slower in 2024 than 2023, most likely in the 3% to 4% range. Homeowners who want to upgrade or invest in a second property may have a chance to take advantage of their increased home equity, but those looking to buy their first home have a trickier path to navigate.
Luckily, there are still creative ways into the property market – it just takes a bit of innovation and foresight. Knowing the terrain is half the battle.
Ready to kickstart your property journey in 2024? Crunch your costs using our handy mortgage calculators, and compare low rate home loans in the table below.
Calculators
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Home loan comparisons on Mozo
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-
Basic Home Loan
- Owner Occupier
- LVR<60%
- Principal & Interest
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
- 6.16 % p.a.
- Initial monthly repayment
-
$3,043
Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.
- Interest rate
- 6.14% p.a. variable
- Comparison rate
- 6.16% p.a.
- Upfront fees
- $350
- Ongoing fees
- $0.00
- Discharge fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Basic Home Loan
-
Unloan Variable
- Owner Occupier
- LVR <80%
- Interest rate
-
5.99
%
p.a.
Variable
- Comparison rate
- 5.90 % p.a.
- Initial monthly repayment
-
$2,995
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
- Interest rate
- 5.99% p.a. variable
- Comparison rate
- 5.90% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $10,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Unloan Unloan Variable
-
Offset Home Loan
- Owner Occupier
- LVR<60%
- Principal & Interest
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
- 6.39 % p.a.
- Initial monthly repayment
-
$3,043
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
- Interest rate
- 6.14% p.a. variable
- Comparison rate
- 6.39% p.a.
- Upfront fees
- $350
- Ongoing fees
- $248.00 yearly
- Discharge fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Offset Home Loan
-
Special Real Deal Home Loan
- Owner Occupier
- Principal & Interest
- LVR <80%
- Interest rate
-
6.19
%
p.a.
Variable
- Comparison rate
- 6.23 % p.a.
- Initial monthly repayment
-
$3,059
No application or service fees. Flexibility to choose your repayment schedule (weekly, fortnightly or monthly). Use multiple Everyday Accounts with 100% interest offset to pay your home loan off sooner.
- Interest rate
- 6.19% p.a. variable
- Comparison rate
- 6.23% p.a.
- Upfront fees
- $595
- Ongoing fees
- $0.00
- Discharge fee
- $250.00
- Extra repayments
- yes - free
- Redraw facility
- yes - fees apply
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- -
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Newcastle Permanent Special Real Deal Home Loan
-
Unloan Variable
- Owner Occupier
- LVR <80%
- Interest rate
-
5.99
%
p.a.
Variable
- Comparison rate
- 5.90 % p.a.
- Initial monthly repayment
-
$2,995
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
- Interest rate
- 5.99% p.a. variable
- Comparison rate
- 5.90% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $10,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Unloan Unloan Variable
-
Fixed Rate Loan
- Owner Occupier
- Principal & Interest
- LVR <80%
- Interest rate
-
6.09
%
p.a.
Fixed 3 years
- Comparison rate
- 6.15 % p.a.
- Initial monthly repayment
-
$3,027
Additional repayments of up to $10K per fixed year. Interest rate discounts available. Waiver of $499 application fee when combined with an Orange Advantage Home Loan.
- Interest rate
-
6.09% p.a.
fixed 3 years
- Comparison rate
- 6.15% p.a.
- Upfront fees
- $798
- Ongoing fees
- $0.00
- Discharge fee
- $250.00
- Extra repayments
- yes - free up to $10,000 pa
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $50,000
- Maximum borrowing amount
- $2,000,000
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this ING Fixed Rate Loan
-
Low Rate Home Loan
- Owner Occupier
- Principal & Interest
- LVR<80%
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
- 6.14 % p.a.
- Initial monthly repayment
-
$3,043
Enjoy a variable rate home loan with a bunch of features from Police Credit Union. Make extra repayments at any time without penalty. No monthly, annual or upfront fees. Free online redraw. Minimum 20% deposit. Qualifying criteria applies. Minimum loan amount is 200K. For new customers only. Mozo Experts Choice Home Lender Credit Union of the Year 2023.
- Interest rate
- 6.14% p.a. variable
- Comparison rate
- 6.14% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge fee
- $150.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $200,000
- Maximum borrowing amount
- -
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- Up front fees waived from 1 May until 31 July 2024
Read our Mozo Review to learn more about this Police Credit Union Low Rate Home Loan
-
Basic Home Loan
- Owner Occupier
- LVR<60%
- Principal & Interest
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
- 6.16 % p.a.
- Initial monthly repayment
-
$3,043
Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.
- Interest rate
- 6.14% p.a. variable
- Comparison rate
- 6.16% p.a.
- Upfront fees
- $350
- Ongoing fees
- $0.00
- Discharge fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Basic Home Loan
-
Mortgage Simplifier
- LVR<80%
- Owner Occupier
- Principal & Interest
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
- 6.17 % p.a.
- Initial monthly repayment
-
$3,043
Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.
- Interest rate
- 6.14% p.a. variable
- Comparison rate
- 6.17% p.a.
- Upfront fees
- $299
- Ongoing fees
- $0.00
- Discharge fee
- $250.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $2,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this ING Mortgage Simplifier
-
Offset Home Loan
- Owner Occupier
- LVR<60%
- Principal & Interest
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
- 6.39 % p.a.
- Initial monthly repayment
-
$3,043
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
- Interest rate
- 6.14% p.a. variable
- Comparison rate
- 6.39% p.a.
- Upfront fees
- $350
- Ongoing fees
- $248.00 yearly
- Discharge fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Offset Home Loan
-
Discount Great Rate Home Loan
- Owner Occupier
- Principal & Interest
- LVR<80%
- over $150k
- Interest rate
-
6.19
%
p.a.
Variable
- Comparison rate
- 6.21 % p.a.
- Initial monthly repayment
-
$3,059
An easy to use Home Loan with no establishment fee and no monthly or annual fees. Minimum deposit of 20% is required. Mozo Experts Choice Awards - Investor Home Loan Award 2024^.
- Interest rate
- 6.19% p.a. variable
- Comparison rate
- 6.21% p.a.
- Upfront fees
- $180
- Ongoing fees
- $0.00
- Discharge fee
- $300.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- -
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- $2,000 cashback for loans more than of equal to $250,000 with LVR <80%, or $2,500 cashback for loans more than or equal to $500,000 with LVR <80%. Applications from 1 June 2024, loan must be drawn down within 90 days from approval.
Read our Mozo Review to learn more about this Greater Bank Discount Great Rate Home Loan
-
Special Real Deal Home Loan
- Owner Occupier
- Principal & Interest
- LVR <80%
- Interest rate
-
6.19
%
p.a.
Variable
- Comparison rate
- 6.23 % p.a.
- Initial monthly repayment
-
$3,059
No application or service fees. Flexibility to choose your repayment schedule (weekly, fortnightly or monthly). Use multiple Everyday Accounts with 100% interest offset to pay your home loan off sooner.
- Interest rate
- 6.19% p.a. variable
- Comparison rate
- 6.23% p.a.
- Upfront fees
- $595
- Ongoing fees
- $0.00
- Discharge fee
- $250.00
- Extra repayments
- yes - free
- Redraw facility
- yes - fees apply
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- -
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Newcastle Permanent Special Real Deal Home Loan
-
Basic Home Loan
- Fixed
- Owner Occupier
- Principal & Interest
- LVR<70%
- Interest rate
-
6.25
%
p.a.
Fixed 3 years
- Comparison rate
- 6.20 % p.a.
- Initial monthly repayment
-
$3,079
No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.
- Interest rate
-
6.25% p.a.
fixed 3 years
- Comparison rate
- 6.20% p.a.
- Upfront fees
- $350
- Ongoing fees
- $0.00
- Discharge fee
- $400.00
- Extra repayments
- yes - up to $10,000 p.a.
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 70.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Basic Home Loan
-
Offset Home Loan
- Fixed
- Owner Occupier
- Principal & Interest
- LVR <70%
- Interest rate
-
6.25
%
p.a.
Fixed 3 years
- Comparison rate
- 6.42 % p.a.
- Initial monthly repayment
-
$3,079
- Interest rate
-
6.25% p.a.
fixed 3 years
- Comparison rate
- 6.42% p.a.
- Upfront fees
- $350
- Ongoing fees
- $248.00 yearly
- Discharge fee
- $400.00
- Extra repayments
- yes - up to $10,000 p.a.
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 70.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Offset Home Loan
-
Fixed Rate
- Owner Occupier
- Principal & Interest
- <80% LVR
- Interest rate
-
6.59
%
p.a.
Fixed 3 years
- Comparison rate
- 7.06 % p.a.
- Initial monthly repayment
-
$3,190
Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.
- Interest rate
-
6.59% p.a.
fixed 3 years
- Comparison rate
- 7.06% p.a.
- Upfront fees
- $160
- Ongoing fees
- $0.00
- Discharge fee
- $160.00
- Extra repayments
- yes - free up to to lesser of 5% of original fixed loan amount, or $5,000 each year
- Redraw facility
- no
- Offset account
- Optional - $10 per month - 1 year fixed term only
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $20,000
- Maximum borrowing amount
- -
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- $3,000 cashback for eligible First Home Buyers, $2,000 cashback when you refinance loans of $250k+, apply from 1 Dec 2022, settle within 180 days.
Read our Mozo Review to learn more about this ANZ Fixed Rate
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Your selected home loans
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
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