Huge mortgages now the norm

The average new mortgage lodged in Australia rose to $354,000 in July – the highest figure on record, according to AFG, Australia’s largest mortgage broker. AFG’s Mortgage Index shows that average mortgage sizes have been on the rise since May this year, after falling to a low of $339,000 in January.

As other institutions report rises in house prices, the AFG data shows that borrowers in New South Wales, Queensland and Victoria are especially willing to take on more debt.

Queensland’s average mortgage size hit a new record of just over $339,000. The average mortgage sizes for New South Wales ($407,000) and Victoria ($321,000), though lower than some of the peaks recorded in late 2008, are the highest for 2009, well up on figures for earlier this year.

Source: AFG