The average home loan in Australia is $730,720, at an average interest rate of 6.24%. Over 30 years, that works out to repayments of about $4,494 a month (Money.com.au, using Australian Bureau of Statistics data to June 2026).
Averages like these are a useful reference point, but they hide a lot. A borrower in Sydney and a borrower in Hobart are in very different positions, and so are a first home buyer and an investor. This guide breaks down the numbers, explains why loan sizes are growing more slowly this year, and shows what your own repayments might look like as rates move.
The headline numbers
| Measure | Average |
|---|---|
| New owner-occupier loan | $730,720 |
| Interest rate | 6.24% |
| Monthly repayment (30 years) | $4,494 |
| Change in loan size, past quarter | down about 0.6% |
| Change in loan size, past year | up about 8% |
The average home loan is about 8% larger than a year ago, which is roughly $52,500 more for a typical borrower. The average repayment rose by $135 since the previous quarter’s data, and Money.com.au notes that higher rates, rather than bigger loans, are now the main driver of increases (ABS Lending Indicators).
One caution on the rate. The 6.24% is an average across new owner-occupier loans from the latest data, and it may not yet reflect the 0.25% rise most lenders passed on from 9 October after the RBA lifted the cash rate to 4.60% on 29 September. Your own rate could be quite different.
Average home loan by state
Loan sizes track property values, so they vary widely across the country:
| State or territory | Average loan | Average monthly repayment |
|---|---|---|
| New South Wales | $841,692 | $5,177 |
| Queensland | $751,000 | $4,619 |
| Western Australia | $720,011 | $4,429 |
| Australian Capital Territory | $665,982 | $4,096 |
| Victoria | $664,145 | $4,085 |
| South Australia | $671,709 | $4,131 |
| Northern Territory | $545,469 | $3,355 |
| Tasmania | $516,189 | $3,175 |
| Australia | $730,720 | $4,494 |
Source: ABS average home loan sizes at June 2026, with repayments assuming a 30-year term at 6.24%, as compiled by Money.com.au.
New South Wales is the largest, and Tasmania and the Northern Territory the smallest. Over the past year, loan sizes grew fastest in Western Australia, up around 16%, or about $100,000.
Average loan by borrower type
| Borrower type | Average loan |
|---|---|
| First home buyer | $610,063 |
| Owner-occupier refinance | $605,455 |
| Investor, new purchase | $708,350 |
| Investor refinance | $689,040 |
About 21.6% of new home loans are interest-only. Investors borrow more than owner-occupiers on average, though investor loan sizes dipped in the June quarter.
First home buyer loans are still about 10% larger than a year ago. Money.com.au links this to greater use of the expanded First Home Guarantee, which lets eligible buyers purchase with a deposit as small as 5% (Housing Australia). If you’re a first home buyer, our first home buyers page covers the schemes, and our guide to stamp duty by state shows what you may need to budget for.
Why average home loans are growing more slowly
Loan sizes have climbed over time, but this year’s growth is modest. Cotality’s Tim Lawless attributes that to lower housing values and reduced borrowing capacity, since interest rates have risen while prices have been falling. National values have now fallen six months in a row and sit 5.2% below the March peak (Cotality).
Borrowing capacity matters here. Lenders assess your repayments at 3 percentage points above the actual loan rate (APRA), so every rate rise lowers how much you can borrow. Cotality estimates the four rises this year have cut a typical household’s borrowing power by about $90,000 (Cotality chart pack).
You can see the effect in the loan sizes themselves. The average loan fell slightly on the quarter even though the year-on-year figure is still higher.
What the average home loan costs as rates move
Repayments are sensitive to the rate, even on a loan of average size. Here’s the average $730,720 loan over 30 years on a principal and interest basis:
| Interest rate | Monthly repayment | Change from 6.24% |
|---|---|---|
| 6.24% | about $4,494 | n/a |
| 6.49% | about $4,614 | up about $119 |
| 6.74% | about $4,735 | up about $240 |
| 6.99% | about $4,857 | up about $362 |
Each 0.25% adds roughly $120 a month on a loan this size. These figures are illustrative and calculated on a 30-year principal and interest basis, so your own numbers will differ. Our home loan calculator lets you test your own balance and rate.
The RBA’s next decision is on 3 November, and September’s CPI is due on 28 October (RBA).
How to use the average (and when not to)
The average loan is a benchmark, not a target. A few things to keep in mind:
- Your loan depends on your situation. Income, deposit, other debts and where you’re buying all shape what you can borrow and what’s sensible.
- Your rate matters more than the average. Two borrowers with the same loan size can pay very different amounts depending on their rate and fees. Our guides on what a comparison rate is and the difference between an interest rate and a comparison rate explain how to compare.
- Bigger isn’t better. A loan you can only just afford leaves no room if rates rise again.
Who people borrow from
Home lending is concentrated among the big four banks, but non-bank lenders are growing. Money.com.au reports non-bank lenders issued $10.49 billion in the June quarter, up about 65% on a year earlier, and now account for 10.7% of new home lending by value.
Brokers play a large part too. Money.com.au, citing the Mortgage and Finance Association of Australia, says more than 75% of new home loans are taken out with the help of a broker (MFAA). Money.com.au also estimates around 31,100 homeowners switch lenders every month.
What to do next
If you’re comparing yourself to the average, start with the basics:
- Check your rate. Is it competitive with what lenders offer new customers? Our refinancing page explains how a review works.
- Work out your borrowing capacity at today’s rates and the 3-point buffer.
- Consider your structure. Extra repayments, offset accounts and loan splits can all change what you pay over time.
- If you own a property, recheck how much equity you could use. Our guide to home equity release explains how to work it out.
- If you’re an investor, see how lenders assess investment borrowing on our investment loans page.
Talk to us
The hfinance team compares across 50+ lenders and can show you where your loan sits against what’s available. Get in touch for a review, or try our home loan calculator first.
This article is general information only and does not take into account your personal financial situation or objectives. Figures are as reported at the time of writing and may change. Repayments are illustrative estimates based on a 30-year principal and interest loan at the stated rates. Speak with an hfinance broker before making any lending decisions.