Lending has increased dramatically the typical loan has increased by about $100,000 in the last year alone.

In today's world, how much money do you need to borrow to buy a typical Australian home? Well, during the last year, the average loan size has risen by about $100,000.

According to the most recent Australian Bureau of Statistics statistics, the national average loan size for owner-occupier houses reached an all-time high of $596,000 in November 2021.

In recent months, the national average has been rising (and rising and rising).

It was $571,000 in October and $503,000 in November 2020.

When it comes to arranging to finance for your next home purchase, it’s more crucial than ever to have an expert in your corner, like us.

A breakdown of each state

In November 2021, the average loan size increased to new highs in all states and territories, except Western Australia (which only dropped a smidgeon below its October record high).

As of November 2021, compared to November 2020, here’s a quick breakdown of each state.

NSW: $769,000 – up from $644,000 (in November 2020)

Victoria: $619,000 – up from $499,000

Queensland: $514,000 – up from $440,000

South Australia: $422,000 – up from $384,000

Western Australia: $440,000 – up from $417,000

Tasmania: $446,000 – up from $373,000

Northern Territory: $433,000 – up from $380,000

ACT: $586,000 – up from $527,000

So, what can you do about the quick increase in the value of your home loan?

Fortunately, for first-time homebuyers, there’s some good news.

For several federal government schemes, such as the First Home Loan Deposit Scheme and New Home Guarantee initiatives, the majority of the average loan prices shown above still fall below the state and territory property price caps.

These two programs allow first-time homebuyers with a 5% down payment to build or buy a home without having to pay for lenders’ mortgage insurance (LMI), which can help people buy their first home in as little as 4.5 years.

Exactly, four years earlier!

The fact that the official cash rate of the RBA has fallen to a new low is another argument in your favor.

You’ll be able to see if the house you’ve been eyeing is a good fit for you, and if it isn’t, what you can do to help bring it closer to reality.

Give us a call today if you’d like to learn more about your financing choices.

To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at finance@pfga.com.au


Disclaimer: The content of this article is general and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your situation and may not be relevant to circumstances. Before taking any action, consider your particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent.

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