Borrowing soars: average loan up almost $100,000 in 12 months

State by state breakdown

Average loan sizes reached new highs in all states and territories in November 2021, except Western Australia (which only dropped a smidgeon below its October record high).

Here’s a quick state-by-state breakdown as of November 2021, compared to November 2020.

NSW: $769,000 – up from $644,000 (in November 2020)

Victoria: $619,000 – up from $499,000

Queensland: $514,000 – up from $440,000

South Australia: $422,000 – up from $384,000

Western Australia: $440,000 – up from $417,000

Tasmania: $446,000 – up from $373,000

Northern Territory: $433,000 – up from $380,000

ACT: $586,000 – up from $527,000

So what can you do about the rapid rise in home loan values?

Here’s the good news – especially for first home buyers.

Most of the average loan values listed above still fall below the state and territory property price caps for a number of federal government schemes, such as the First Home Loan Deposit Scheme and New Home Guarantee initiatives.

These two schemes allow eligible first home buyers to build or purchase a home with only a 5% deposit, without forking out for lenders’ mortgage insurance (LMI), which on average helps people purchase their first home 4 to 4.5 years sooner.

That’s right – 4 years sooner!

Another factor working in your favour is that the RBA’s official cash rate is at a record low and interest rates are also very low as a result (which helps when it comes to your borrowing capacity).

Speaking of which, one very important step you can take is to get in touch with us so we can help you assess your borrowing capacity.

This way, you can work out whether that property you have your eye on is a goer, and if not, identify steps you can take to help bring it within reach.

To find out more, give us a call today – we’d love to help you explore your borrowing options.

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