Grim figure exposes reality for millions of Aussie homeowners
- Average new mortgage at record high $626,055
- READ MORE: Why rate rises hit Aussies harder
The average new mortgage in Australia has reached a record high as rapid population growth fuels house prices.
Sydney and Melbourne are home to some of Australia's worst postcodes for struggling borrowers, with houses typically costing significantly more than the rest of the state.
The national average for a new home loan was a record-high $626,055 in May with property prices rising despite the most aggressive rate hikes since the late 1980s.
In NSW, the average new mortgage was even higher at $767,584, with Sydney being Australia's most expensive property market.
The level was even higher than Victoria's $601,891 average and Queensland's record-high $586,627 lending level, the Australian Bureau of Statistics data showed.
This occurred as 487,820 migrants moved to Australia in the year to April, a level slightly below the record 547,300 intake for 2023.
Expensive house prices and 13 interest rate rises since 2022 are also contributing to higher levels of mortgage and rental stress, where households are struggling to pay their bills.
RateCity research director Sally Tindall said debt levels were hitting record high levels even though the Reserve Bank cash rate is now at a 12-year high of 4.35 per cent.
Australia's average new mortgage has reached a new record high as rapid population growth fuels house prices - leading to rising mortgage stress
The 2213 postcode - covering East Hills, Panania and East Hills in south-west Sydney - was a particular danger zone with 35 per cent of borrowers in stress, compared with 90 per cent of renters, a Digital Finance Analytics survey showed
'Over the last two years, buyers have seen their maximum borrowing capacity plummet, in some cases by hundreds of thousands of dollars, as a result of the RBA hikes, and yet the average new loan size has hit a new record high,' she said.
Sydney
The 2213 postcode - covering East Hills, Panania and Picnic Point in south-west Sydney - was a particular danger zone with 35 per cent of borrowers in stress, compared with 90 per cent of renters, a Digital Finance Analytics survey showed.
Principal Martin North said dual-income households were typically struggling to pay their bills in an area where $81,000 was the average income.
'These are mostly families. It suggests more than one income is going on the mortgage,' he said.
In this area, almost half or 48 per cent of household incomes was going towards a mortgage every month.
This is well above the one-third level traditionally defined as mortgage stress.
That was based on couples typically spending $3,100 a month on paying off a home loan, from $6,400 in their combined after-tax income.
East Hills has a median house price of $1.409million, compared with $1.443million for neighbouring Panania.
The 3064 postcode covering Craigieburn, Mickleham and Donnybrook in the city's north, had 45 per cent of borrowers in mortgage stress, compared with 70 per cent of renters
These prices are close to greater Sydney's $1.446million median, which would now require a combined household income of $225,611 to get a home loan.
Melbourne
Melbourne's median house price of $948,879 is less severely expensive but it too has pockets of mortgage stress.
The 3064 postcode covering Craigieburn, Mickleham and Donnybrook in the city's north, had 45 per cent of borrowers in mortgage stress, compared with 70 per cent of renters.
In this area, 40 per cent of income was going towards a mortgage with average monthly repayments of $2,280 from a monthly income of $5,657.
Craigieburn's mid-point house price is cheaper at $691,885 but the average taxable income is lower at $65,000.
With the banks only able to lend someone 5.2 times their income, even the typical house in his suburb is beyond the reach of an average, full-time income earner on $98,218 who is only able to buy a $638,400 house with a 20 per cent deposit.
