The average new owner-occupier home loan in Australia now sits well above half a million dollars, and in the most expensive states it is higher again. Behind that figure is one of the most heavily indebted household sectors in the developed world. The numbers below set out the state of Australian home lending, last checked June 2026.
These figures are updated regularly by the Australian Bureau of Statistics and the Reserve Bank, so treat them as the latest available rather than live, and follow the sources for current data.
The home loan market in numbers
| Measure | Approximate figure | Source |
|---|---|---|
| Average new owner-occupier loan | Around $640,000 | ABS Lending Indicators |
| Highest state average (NSW) | Around $780,000 to $800,000 | ABS Lending Indicators |
| Household debt to income | Around 185 to 190 per cent | Reserve Bank of Australia |
| First home buyer share of owner-occupier loans | Around 30 per cent | ABS Lending Indicators |
| Standard serviceability buffer | About 3 percentage points | APRA guidance |
The average loan has climbed with house prices, which is why the deposit and borrowing power questions dominate the first-buyer conversation.
The deposit gap
The hardest number in Australian home buying is the deposit. A 20 per cent deposit on an average loan is well over $150,000, which is why saving one can take years, and why most first buyers now use a smaller deposit with Lenders Mortgage Insurance or a government scheme such as the First Home Guarantee.
The mortgage is large, but the deposit is the wall. Most of the policy and most of the stress in Australian home buying is about getting over it.
What it means for borrowers
High average loan sizes and high household debt mean two things for borrowers. First, the rate matters enormously: on a $640,000 loan, a difference of half a percentage point is thousands of dollars a year, which is why the loyalty tax of staying on an uncompetitive rate is so expensive. Second, the serviceability buffer lenders apply means your approved amount is lower than the headline rate suggests.
Sources and notes
These figures draw on the Australian Bureau of Statistics (Lending Indicators, which track new loan commitments) and the Reserve Bank of Australia (household debt and financial stability data), plus APRA guidance on serviceability. They are approximate and updated regularly, so check the source for the current number. This is general information, not financial advice.
The bottom line
The average mortgage is big and the debt behind it is high, which makes the rate you pay the single most important number in your budget. To compare what is actually on offer, a tool like Your Finance Guide is a sensible start, then read our complete home loans guide.