The average new owner-occupier mortgage in Australia is now $636,597 – a new record high that is set to keep on rising alongside property prices in key states.
Over the last 12 months, the national average has risen by $56,357, an increase of $154 a day, despite the fact the cash rate is at its highest level since November 2011.
Every state across the country saw its average new owner-occupier loan size rise this month, with NSW unsurprisingly taking out the title of having the largest average new mortgage at $780,028, according to the ABS lending indicator figures out today.
While this figure has risen for the last four months, it still remains below the peak recorded in January 2022 of $803,235.
The average new loan size for owner-occupiers hit record highs in the states of Queensland, South Australia and Western Australia.
The size of the average new owner-occupier mortgage in Western Australia has risen by an astonishing $93,967 in the past 12 months – a rise of 19.9 per cent.
That’s $257 a day.
Source: ABS Lending Indicators June 2024, released 2 Aug 2024, original data. Includes construction, new dwellings and existing dwellings but excludes loans for land, alterations and additions. Data for NT and ACT not available. Excludes refinancing.
New lending picks up again in June
The value of new home loans rose this month, after a surprise drop in May.
Overall new home lending continues to rise, with the value of new mortgages increasing by a total of 19.1 per cent compared to the same time a year ago.
Investors continue to lead the charge with a 30.2 per cent rise in new home loans compared to June 2023 in seasonally adjusted terms.
Value of new home loans approved in June 2024
| Amount | Monthly change | Year-on-year change | |
| TOTAL | $29.19 billion | +$370 million +1.3% |
+$4.67 billion +19.1% |
| Owner-occupier loans | $18.17 billion | +$83 million +0.5% |
+$2.12 billion +13.2% |
| Investor loans | $11.02 billion | +$288 million +2.7% |
+$2.55 billion +30.2% |
Source: ABS Lending Indicators June 2024, released 2 Aug 2024, seasonally adjusted data
First-home buyer numbers continue to limp along
A total of 9,947 owner-occupier first-home buyer mortgages were recorded in June in seasonally adjusted terms.
While this is marginally up from the same time a year ago (324 increase), it is still almost half of what it was in the recent peak in January 2021 of 17,162.
Refinancing activity takes another slide in June
A total of $15.79 billion worth of mortgages were refinanced in the month of June – a drop of $301 million from the previous month.
Total value of refinancing
| June 24 | Monthly change | Year-on-year change | Total since start of hikes
(May 22 – May 24 incl.) |
||
| $15.79 billion | -$301 million -1.9% |
-$4.18 billion -20.9% |
$475.66 billion |
Source: ABS Lending Indicators June 2024, released 2 Aug 2024, seasonally adjusted data.
Fixing rises to the highest level since September 2023
The proportion of new and refinanced loans opting for a fixed rate clocked in at 2.6 per cent in June.
While this is just a fraction of what it was at the peak in July 2021, when 46 per cent of new and refinanced loans chose to go with a fixed rate, it is the highest level of fixing since September of last year.
RateCity.com.au research director, Sally Tindall, said:
“The average new owner-occupier loan size has just hit another record high, as property prices in key capital cities continue to soar.
Across the country, the average new owner-occupier mortgage has risen by $154 a day over the last 12 months. On a 30-year mortgage, you can basically double that figure when adding in interest costs.
In Western Australia, the average new mortgage for an owner-occupier is now almost $100,000 more than it was just 12 months ago – rising by a gobsmacking $257 a day. It’s incredible to think this has unfolded under the weight of a rising cash rate.
While there is seemingly no shortage of buyers prepared to up their bids at heated auctions in key capital cities, many would-be first-home buyers have their hands tied by the double whammy of rising rates and property prices.
The latest ABS figures confirm the number of owner-occupier first-home buyer mortgages is stuck in neutral, clocking in at just 9,947 in the month of June.
This figure has managed to lift above the 10,000 mark just once since the start of the rate hikes – a far cry from the most recent peak in first-home buyer numbers recorded back in January 2021 when over 17,000 first-home buyer mortgages were written for owner-occupiers.”
