What is Australia's average mortgage size in 2023?

Key Facts

  • The average mortgage size for owner-occupiers in Australia was $599k in September 2023.
  • Average mortgage size varies wildly by state. 
  • The average home loan deposit size required to buy is now six figures. 
Australian house

For most Australians, taking out a home loan will be the biggest financial decision they can expect to make. And as property prices rise over time, homebuyers must borrow more and more to enter the housing market, and save up more and more for that critical first home loan deposit

The latest lending indicators from the Australian Bureau of Statistics (ABS) show that the average mortgage size (for owner-occupier dwellings) was $599k in September 2023.

While borrowing activity has slowed down this year as interest rate hikes bite into demand, the average national loan size is still up over pre-pandemic levels, according to the ABS.

Out of all states and territories, loans were largest in NSW at $757k. Victoria came in second with an average loan size of $594k, and the ACT was third with the average loan coming in at $587k.

Average loan size by state and territory — September 2022-2023 (Source: ABS)

Sep 2022Sep 2023Annual change (%)Annual change ($)

So what’s caused this borrowing boom? As far as contributing factors go, it’s hard to look past the impact of surging property prices that we’ve witnessed across the country, particularly over the pandemic period.

Rate hikes have depressed buyer activity in hotspots like Sydney and Melbourne, but with the potential cash rate peak looming, the market may soon take off again.

Breaking down the cost of an average loan

For most Australians, a loan of around $500,000 is going to be a significant amount of money, but what would a mortgage of that size look like in terms of regular repayments and total interest costs? Here’s an example based on a few different interest rates.

Monthly repayments on a $500,000 loan

RateInitial monthly repaymentEstimated total interest
5.00% p.a.$2,923$376,885
5.50% p.a.$3,070$421,131
6.00% p.a.$3,222$466,452
6.50% p.a.$3,376$512,811
7.00% p.a.$3,534$560,169

So even with a very low rate (which is unlikely to stay that low over 25 years), a mortgage holder with a $500,000 loan would still need to fork out at least $3,000 per month in repayments. And that’s not taking into account any other costs like loan fees.

How about the cost of a loan across different states and territories? Using the current average variable rate in our database (6.74% p.a.) and assuming a 25 year loan term, we can see just how much mortgage costs can vary across markets.

Average mortgage cost across Australia (September 2023)

StateLoan sizeInitial monthly repaymentEstimated total interest

Of course, the above scenarios are based on the average loan size. To find out how much the regular repayments and total interest would come to on a different loan size, try our home loan repayments calculator.

Looking to find a mortgage with a low interest rate? Browse the rates on offer from a number of different Australian lenders with Mozo’s dedicated home loan comparison tables.

Compare low interest rate home loans - last updated 29 November 2023

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* 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.

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