About twenty years ago, the average Australian home loan was estimated at the sum of $100,000. Things were different ten years before that when the average home loan was under $40,000. And, at the present moment, the reality shows us different and increasingly higher figures. In order to comprehend the way in which everything changed, we will introduce you to the information gathered by specialists concerning this particular aspect.
Changes in the average home loans
In October of 1975 according to statistics, the average home loan in the country was $17,400. Now, after forty years have passed, a regular resident who wishes to purchase a home needs to borrow about $382.000. The numbers are quite different, aren’t they? These figures from the Australian Bureau of Statistics (ABS) show us that the prices of home loans have rapidly grown in the last couple of years. Currently, the average home buyer is most likely to experience mortgage stress and pressure, given these aspects concerning home loans. Reports indicate that the average Australian spends about 31.7 percent of his/her weekly family income on mortgage repayments while at the same time going through a lot of stress.
How home loans evolved throughout the years
Now, let’s take a closer look at the way in which home loans changed over time. As of October 1975, the average home loan was of $17,400, ten years later, this sum was almost doubled, meaning that in 1985, the average Australian home loan was estimated at $41,800. Ten years after that, in 1995, once again, the numbers considerably increased as the average sum went to $95,600. It keeps getting bigger, doesn’t it? Ten years later, in 2005, the estimated sum was of $217,500, which is more than the double of the average of ten years before. And now, as already mentioned, the average home loan is $382,400. And this is the stressful reality for the majority of homeowners in the country.
Home loan differences between Australian states
Let’s move on to the main differences between home loans in different states in Australia in 2015. It may not come as a surprise to many that NSW presents the largest home loans with an average of $452,200. Next on the list are VIC, ACT and WA. Still, this hasn’t always been the case, as in 1975, surprisingly enough, the Northern Territory held supremacy concerning the highest average home loan rate of $21,600. On the other hand, Tasmania constantly presented the lowest average, varying from $15,900 in 1975 to $236,400 in 2015.
The point is that as time passes by, property prices are on the growth as well. In what way do these averages contrast with your personal home loan? The common thing you’ll find is, they’re always increasing year by year.