Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Average loan sizes jump in tandem with home values

house coinstack ta house coinstack ta
Charbel Kadib 5 minute read

The rebound in residential property prices has triggered increases of up to 9.3 per cent to the average size of a broker-originated home loan, new data has revealed.

According to the Australian Finance Group’s (AFG) latest quarterly mortgage and competition index – which is based off data collected from AFG’s network of 3,000 brokers – the national average size of a broker-originated mortgage increased to $538,588 in the December quarter of 2019, up 6 per cent ($30,640) from $507,948 in the previous corresponding period.

This has coincided with a sharp rebound in dwelling values over the second half of 2019 following an 18-month downturn in the housing market that saw national home values decline by 8.4 per cent.

The latest data from property research group CoreLogic revealed that national home values have now risen by 4 per cent in the three months ending December 2019, driven by Sydney and Melbourne, where values increased by 6.2 per cent and 6.1 per cent, respectively, over the same period.


Accordingly, the AFG index reported that on a state-by-state basis, among the largest increases in the average loan size were recorded in Victoria and NSW, where they rose by 7.2 per cent ($36,475) and 6.4 per cent ($39,812), respectively.  

However, despite a less pronounced increase in dwelling values across Adelaide, South Australia recorded the sharpest increase in the average size of a broker-originated home loan, up 9.3 per cent ($37,082) when comparing the December quarter 2019 to the previous corresponding period.  

Meanwhile, the average loan size also increased in the Northern Territory (5 per cent/$20,470), Queensland (2.3 per cent/$10,444) and Western Australia (1 per cent/$4,722).

As at 31 December 2019, the average loan size was largest in NSW ($657,758), followed by Victoria ($540,479), Queensland ($459,412), Western Australia ($448,104), South Australia ($432,250) and the Northern territory ($429,982).

Overall, the AFG index reported that surveyed brokers lodged $15.4 billion in home loans over the December quarter, up from $12.9 billion in the December quarter of 2018.


[Related: Non-majors take majority share of investor loans]

Average loan sizes jump in tandem with home values
house coinstack ta
TheAdviser logo

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

house coinstack ta
Charbel Kadib

Charbel Kadib

Charbel Kadib is the news editor on The Adviser and Mortgage Business.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

Email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.


more from the adviser
REA Group logo

Breaking News

Brokerages to integrate as one brand

Mortgage Choice and Smartline will operate under one brand, effe...

handshake news

Breaking News

COG makes acquisition moves

COG Financial Services has grabbed larger stakes in Westlawn and ...

money grants

Breaking News

SocietyOne doubles funding, launches secured loan to public

The personal lender has announced a $200 million warehouse facili...