ABS data reveals ‘scary’ $724k average home loan

The average home loan size in Australia surged to $724,415 in the March quarter, marking a 9% increase from the previous year, according to the Australian Bureau of Statistics (ABS). Despite the rise, the number of new home loans fell 6.2% to 139,794, indicating fewer Australians are entering the property market. The data reflects a trend where remaining buyers are taking on significantly larger debts as property prices continue to climb. ABS head of financial statistics Mish Tan attributed the decline in loan numbers to strong growth in 2025 and cash rate hikes in February and March, though total lending remains 8.6% higher than a year ago. Mortgage Choice Greenvale broker Rebecca Stella described the figures as ‘scary,’ highlighting that housing affordability has become increasingly difficult. She noted that rising costs for groceries, petrol, and mortgage repayments are forcing households to tighten their budgets, often requiring two incomes to afford home ownership. Stella observed fewer attendees at auctions and open-house inspections, but those still active are borrowing heavily due to persistently high prices. She warned that households may need to cut back on discretionary spending, such as subscriptions, to manage higher repayments. The trend underscores growing financial strain on borrowers, with experts suggesting the market may stabilize rather than drop further.