The total value of owner-occupier home loans written in Australia for the first quarter of 2025 amounted to $48.17 billion. As of March 2025, the average home loan in Australia was $659,920, showing a 0.9% decline compared to the previous quarter and a 9.4% increase when compared to the same time last year. For first-time home buyers, the average loan amount drops to $542,356, reflecting a 0.1% decrease compared to the previous quarter and a 13.4% increase when compared to the same month of the previous year.
The average investor home loan stood at $673,033, marking a 0.2% decrease over the quarter and showing a solid 10.7% increase over the year. Meanwhile, the average refinancing home loan amounted to $517,882, signifying a notable 1.5% decrease over the month and a substantial 15.2% increase over the year. Further statistics can be found in the visualisation below.
Inflation rose in the June quarter but it was in line with RBA's own forecasts heading off the need for another rate hike. At the same time inflation is still too high and the RBA still lacks confidence that it will sustainably head back to target so it's too early to expect a cut.
Over the past decade, the average sizes of home loans in all states have shown significant increases. Tasmania takes the lead with an 98.8% increase, nearly doubling the average home loan size. New South Wales follows closely with an 85.4% increase, while South Australia also witnessed a 81.6% increase in the size of home loans over the same period.
In 2019, slightly more than half of refinancers, accounting for 52%, were external refinancers, indicating that they sought new loans from lenders other than their current one. Fast forward to 2023, the landscape has evolved significantly, with nearly three-quarters of all refinancers being external. In March 2025, 60% falling into the category of external refinancers. Demonstrating a growing trend of homeowners exploring new lending options outside their existing lenders, showcasing changing dynamics in the refinancing market.
As of March 2025, new loan commitments for the purchase of existing dwellings amounted to $40.9 billion, which represents a substantial 85% of the total value of owner-occupier home loans written in Australia for that month. Meanwhile, loans for the construction of dwellings constituted 11% of the total, with an additional 6% allocated for newly erected dwellings.
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