Discover Your Home Loan Potential in 2024

As housing prices continue to soar across many cities, prospective home buyers are facing higher mortgage amounts than ever before. In this guide, we'll delve into the current landscape of home loans across Australia, providing insights into average borrowing amounts by state and offering strategies to manage and reduce your loan balance effectively.

Impact of Rising Property Values

Despite economic challenges like rising interest rates and increased living costs, Australian home values have surged by 8% over the past year, adding approximately $59,000 to the average home's value, according to CoreLogic.

This growth benefits existing homeowners but poses challenges for buyers looking to enter the market, who may need larger loans to afford their dream properties. However, not all regions are experiencing uniform increases in loan sizes; some areas are seeing stable or even slightly smaller mortgage amounts.

State-by-State Breakdown

As of May 2024, the average new mortgage in Australia has reached a record high of $626,055, according to the Australian Bureau of Statistics, up from $584,607 just a year earlier in May 2023. This figure highlights the financial commitment required, translating to approximately $3,875 in monthly mortgage payments for a 30-year principal and interest home loan at 6.3%.

New South Wales (NSW): $767,584 (up from $720,029 in May 2023)

Victoria (VIC): $601,891 (slightly up from $598,949 in May 2023, but below the peak of $651,364 in January 2022)

Queensland (QLD): $586,627 (a solid increase from $521,609 in May 2023)

South Australia (SA): $541,775 (a significant rise from $467,438 in May 2023)

Western Australia (WA): $538,860 (up from $472,080 in May 2023)

Tasmania (TAS): $462,324 (minimal change from $465,313 in May 2023)

Australian Capital Territory (ACT): $614,242 (up from $589,130 in May 2023)

Northern Territory (NT): $437,427 (up from $424,873 in May 2023)

Note that these figures illustrate significant variations in borrowing requirements across the country, reflecting local economic conditions and market dynamics.

Tips to Accelerate Your Loan Repayment

To manage your home loan effectively and potentially reduce its burden, consider these practical tips:

Utilise an Offset Account

By parking your savings in an offset account linked to your mortgage, you can reduce the interest charged on your loan balance, helping you pay it off faster.

Make Extra Repayments

Look for loans that allow additional repayments without penalties. Even small additional payments can accelerate your loan payoff and save on interest costs over time.

Switch to Fortnightly Payments

Changing from monthly to fortnightly repayments can result in making an additional month's payment each year, cutting down on your loan term and interest paid.

Get Personalised Mortgage Solutions at Osinski Finance

Navigating the complexities of home loans in today's market requires personalised advice tailored to your financial situation. Whether you're ready to buy and invest in a property or simply exploring your borrowing capacity, Osinski Finance is here to assist you.

Reach out to us today to discuss a mortgage solution that aligns with your needs and goals.

Disclaimer: The content of this article is general in nature 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 personal situation and may not be relevant to circumstances. Before taking any action, consider your own 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.