Aussies take bigger home loans: AFG

Font size :

Australia's appetite for debt is showing no signs of abating. The latest data from mortgage broking group AFG showed that, in the past six months, the average Australian mortgage size increased by 5.6% to $317,000 amidst rising property prices.

The data suggests that the increase was fuelled by Western Australia, where average mortgages rose 13.5% in the same period from $325,000 to $376,000.

A 7.4% rise was seen in Victoria to reach $288,000 on average. Queensland saw a 2.8% rise to an average of $290,000.

Kevin Matthews, director of AFG, said: "While we started the year with a two-tier mortgage market, our brokers are telling us that growth in WA is slowing down to more sustainable levels, while in NSW and to a lesser extent Victoria, recovery is underway.

"Our expectations are that these trends will continue in the second half of the year but we expect an increase in fixed rate loans as concerns about a widely-forecast rate rise take hold."

AFG sold $2.6bn of loans across Australia in June 2007 at an average size of $317,000, property investors accounted for 33.7% of those.

The average loan size was highest in NSW at $375,000 and lowest in South Australia at $274,000.

The AFG data shows loan to value ratios (LVRs) in NSW reached 70.8% in June, this is much higher than WA where the figure was 55.1%. Around 38.7% of loans sold were standard variable while 20.4% were fixed and 19.7% basic variable.

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Wednesday, Sep 20, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords