Press Release

For immediate release

Information verified correct on December 7th, 2016

Which states hold the savviest and most reckless borrowers in Australia

  • ACT is savviest state for comparing home loans online
  • While Western Australians are most reckless, doing least research but taking up more loans
  • Northern Territory has least demand for buying property
  • Why it pays to be a savvy borrower!

March 19, 2014, Sydney – One of Australia’s biggest comparison websites finder.com.au/home-loans has uncovered the best and worst home loan borrowers in each state across the country and urges more borrowers to get savvy and compare home loans online.

According to finder.com.au, those in the Australian Capital Territory are the savviest when it comes to comparing home loans online, with more people per capita searching for home loans on finder.com.au/home-loans than any other state.

Borrowers in the Northern Territory were the most reckless, according to the research. They were the least likely to research the home loan market online and had the least amount of home loans financed per capita in January 2014.

The findings were based on finder.com.au home loan traffic and Australian Bureau of Statistics Housing Finance and Australian adult population data.

Michelle Hutchison, Money Expert at finder.com.au said borrowers in some states were likely to be saving more on their home loan than borrowers in other states.

“It’s great to see so many borrowers in the ACT taking advantage of the home loan market by comparing lenders online, as they probably know more about home loans and more aware of the deals on offer. Those in New South Wales and Victoria followed behind the ACT, being the second and third-most savvy home loan shoppers.

“However, borrowers in other states are clearly not as savvy, with Northern Territorians the least interested, followed by Tasmanians. In fact, those in the ACT showed almost four-times more interest in comparing home loans than Northern Territorians.”

Home loan market the hottest in Western Australia

Even though borrowers in NSW made up the biggest share of all home loans financed in January this year, closely followed by Victoria, Western Australian borrowers held the largest number of home loans financed compared to population size.

Out of the total 43,963 home loans financed in January, 28 percent were taken out in NSW, followed closely by VIC with 27 percent. WA borrowers accounted for 16 percent of all home loans financed while holding 11 percent of the adult Australian population.

WA also has the third-highest average home loan size of $320,300, behind NSW with an average loan size of $357,600 and ACT with $341,700.

Tasmania has the smallest average loan size of all the states ($216,500), as well as the second-lowest demand for buying property. TAS’s average loan size is 33 percent smaller than the national average, while NSW’s is 11 percent larger.

Average loan sizeNo. of loans financedProportion of loans financed
National$322,90043,963100%
NSW$357,60012,19328%
VIC$328,90011,76627%
QLD$298,0008,47519%
WA$320,3006,84416%
SA$256,8002,9907%
TAS$216,5007672%
ACT$341,7006331%
NT$321,6002951%

Source: finder.com.au/home-loans, Australian Bureau of Statistics Housing Finance original data January 2014

Use this table on your website:

“Whether you’re looking to buy a property in a slower market like Northern Territory or a hot market like Western Australia where competition is tougher, all borrowers can make a big difference to the cost of a home loan by being savvy,” said Mrs Hutchison.

“There’s a huge difference between what lenders are charging, for instance variable rates range from 4.49 percent to almost 9 percent.

“The difference between just 0.25 percentage points for a $300,000 loan is about $50 per month or potentially $18,000 over a 30-year loan term. So it’s worth jumping online and comparing home loans before hitting the property market.”

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Disclaimer

The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.

About finder.com.au:

finder.com.au is one of Australia’s biggest comparison websites and has helped over 4.8 million Australians find better credit cards, home loans, life insurance, shopping deals and more since 2006. finder.com.au compares 250 credit and debit cards from 31 providers, over 300 home loan products, and information from 13 life insurance providers as well as online shopping promo codes, mobile phone plans, travel insurance and more. One Australian every five minutes is using finder.com.au or creditcardfinder.com.au to find better (Source: Google Analytics).

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