Average home loan jumps to $318,000
Leading mortgage broker group AFG said the size of the average home loan jumped to $318,000 in May, an increase of 3.6 per cent. AFG analysis reveals the loan size increase has been led by Queensland and NSW activity. For a loan of $318,000 a 7.5 per cent over 25 years a borrower would be required to pay a minimum monthly repayment of $2350. The Housing Industry Association of Australia believes that households contributing greater than 30 per cent of their annual income to mortgage repayments are experiencing mortgage stress, meaning the average household with a mortgage will now require a combined household income of greater than $94,000 to avoid ‘mortgage stress'.