Average mortgage size up in March quarter: AFG

According to the latest AFG Index released by the Australian Finance Group (AFG), the national average mortgage size grew by approximately $5,000 during the March quarter 2024 on the previous quarter.

This has brought the national average mortgage size to $628,695, up from $623,975 on the December 2023 quarter.

South Australia recorded the largest increase of the states and territories, with its average mortgage size increasing from $527,509 in the December 2023 quarter to $544,942, an increase of around $17,000.

This was followed by Western Australia, with an average mortgage size increase of approximately $10,000, from $508,854 to $518,534 in the March quarter, and Queensland with an increase of just over $9,000, from $570,269 to $579,515.

Victoria recorded the smallest average mortgage size increase of around $5,000, from $631,985 to $636,267.

The largest decline was recorded in the Northern Territory, with a drop in the average loan size of $47,000, down from $618,299 to $571,149, while NSW recorded a decline of approximately $7,000, from $747,113 to $740,025.

AFG chief executive David Bailey commented on these findings: “The average mortgage size was lower in New South Wales, however the loan-to-value ratio was up suggesting increasing property prices in that state are having a small impact on affordability.”

Bailey added that the larger increases seen in states such as Western Australia were “not surprising” and were “consistent with other industry data about property prices.”

Furthermore, the index showed that the national loan-to-value ratio (LVR) decreased from 65.7 per cent in the December 2023 quarter to 65.1 per cent in the March quarter.

The NT once again recorded the largest decline of the states and territories, with the territory’s LVR dropping from 67.3 per cent to 64.1 per cent.

This was followed by Western Australia with an LVR drop of 1.1 per cent (67.4 per cent to 66.3 per cent), while Queensland’s LVR fell by 0.3 per cent (63.3 per cent to 63 per cent) and South Australia’s fell by 0.1 per cent (65.7 per cent to 65.6 per cent).

Meanwhile, NSW’s LVR increased from 63.6 per cent in the December quarter to 64.5 per cent in the March quarter, followed by an increase in Victoria of 0.4 per cent, from 67 per cent to 67.4 per cent.

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