Average Mortgage in Australia – 2025 Data & Trends

Understanding the average mortgage size in Australia

Knowing the typical mortgage size in Australia helps you set realistic expectations about borrowing capacity, deposit requirements, and long-term affordability. This benchmark varies significantly between capital cities and regional areas and shifts with broader housing market trends.

• While the national average provides a useful reference point, lenders ultimately assess your individual financial situation. Income, expenses, credit history and existing debts determine how much you can borrow, not the market average itself.

Because these figures change frequently, many borrowers benefit from expert guidance. HeyNest connects you with an independent broker who compares your profile with current lending conditions to help you understand how your borrowing power aligns with broader market norms.

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Current average mortgage interest rates explained

Interest rates are a major factor shaping your total loan cost. Australian mortgage rates move with Reserve Bank decisions, lender competition and the type of loan you choose.

Key rate categories include:

• Variable rates: Adjust in line with broader economic shifts and require ongoing monitoring.

• Fixed rates: Provide repayment certainty for a set period but follow different pricing trends from variable rates.

• Discounted rates: Many lenders offer rates below their standard pricing, meaning the actual average paid by borrowers can differ from advertised figures.

Securing a rate below the market average requires negotiation and a strong understanding of current conditions. HeyNest connects you with an expert broker who negotiates directly with multiple lenders to secure the most competitive rate available for your circumstances.

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Calculate your typical mortgage repayments

Typical mortgage repayments depend on three core factors: loan size, interest rate and loan term. Each repayment includes both principal and interest, with the interest component heavier in the early years. Payment frequency also influences the total interest paid over the life of the loan.

• Even small rate changes can materially impact long-term repayment totals, making accurate calculations essential. A mortgage calculator or professional support provides the clearest picture of what your repayments will look like and how different rates or terms affect affordability.

HeyNest simplifies this process by connecting you with an independent broker who analyses repayment scenarios, compares lender options and provides a tailored repayment plan aligned with current Australian market conditions.

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Frequently asked questions

What is the average home loan deposit in Australia?

The average deposit often sits between 10% and 20% of the property value, with 20% being the benchmark to avoid costly Lenders Mortgage Insurance (LMI).

Are fixed or variable rates closer to the average mortgage rate?

Rates constantly shift, but the average variable rate is often lower than the fixed rate, although fixed rates offer certainty against future RBA rate hikes.

Does the average mortgage rate include fees?

No, the quoted average interest rate (the nominal rate) does not include fees. The comparison rate is a better indicator as it legally must include most fees and charges.