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The average size of a home loan rose across every state and territory during the September quarter.
Mortgage Choice’s most recent Home Loan Report has revealed year-on-year (YOY) increases to the average home loan submission across every state and territory during the September 2024 quarter.
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On a national level, the average home loan submission size ($611,932) was 10.2 per cent higher than it was at the same time last year.
South Australia and the Northern Territory saw the greatest change with $576,957 representing a 16.2 per cent YOY increase.
Western Australia was the state or territory with the next highest YOY increase (up 15 per cent to $525,952), followed by Queensland (up 13.3 per cent to $569,649).
Elsewhere, Mortgage Choice data revealed more modest YOY loan size increases in Victoria/Tasmania (up 7.6 per cent to $625,987) and NSW/ACT (up 7.1 per cent to $709,026).
The aggregation group determined these figures by dividing the total value of loan applications by the number of applications submitted.
Anthony Waldron, Mortgage Choice CEO, said the findings reflected the uncertainty in the market for prospective buyers.
“When you consider that average loan sizes have grown for the last three quarters, it’s no surprise that prospective buyers are waiting for home loan interest rates to fall to put their purchase plans into action,” Waldron said.
“While most economists predict that a rate cut is coming, the timing of that cut remains uncertain – especially given the latest data from the Australian Bureau of Statistics shows that underlying inflation remains high and employment growth is strong.
“My advice to hopeful buyers would be to buy when you’re ready and avoid trying to time the market.”
Investors on the move
Meanwhile, Mortgage Choice data showed a sharp YOY increase in the value of loans for investment during the September quarter.
The value of investment loans was up 28.9 per cent YOY, according to the Home Loan Report, compared to a 7.3 per cent increase for owner-occupier loans.
The Australian Bureau of Statistics (ABS) reported a similar trend in its Lending Indicators data release for September, which saw the value of investor loans 29.5 per cent higher YOY and the value of owner-occupier loans 13.1 per cent higher YOY.
Mortgage Choice data also revealed some clear winners when it came to interest from property investors.
Queensland (up 51.5 per cent) and Western Australia (up 52.3 per cent) saw the largest growth in value of loans for investment, followed by NSW and the ACT (up 21.3 per cent).
Waldron said 2024 had been a strong year for Sunshine State investors.
“The September quarter was no different,” Waldron said.
“Queensland remains an attractive opportunity for investors, with strong interstate migration, high rental yields and low vacancy rates in regional areas and ongoing infrastructure investments providing long-term growth potential.”
[Related: Housing is a major election issue for almost 9 in 10 Australians]
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