Australia’s property prices continue to rise, and so does the size of the mortgages needed to secure a home. The average loan for owner-occupiers has reached record highs, and that means getting the right loan has never been more important.

At the end of May 2024, the national average mortgage size sat at $626,055, up 7.1% year-on-year, according to the Australian Bureau of Statistics. In some states, that figure climbed even higher, with NSW topping the charts at over $800,000.

For buyers in Western Australia, the average sits slightly below the national level, but the upward trend is still sharp. With larger loans come larger monthly repayments, and bigger risks if you’re locked into an unsuitable product.

Why Mortgage Brokers Are Essential in a High-Loan Environment

With so much at stake, comparing lenders isn’t just about chasing the lowest interest rate. It’s about finding the lender that’s most aligned with your financial situation and goals.

A mortgage broker helps you:

• Compare loans across multiple lenders, including those not directly accessible to the public
• Understand the borrowing criteria that affect how much you can get approved for
• Access exclusive deals, rebates or lower-rate options
• Save time and reduce application stress by managing the paperwork and communication

Every lender calculates borrowing power differently, and the gap between what one will offer versus another can run into the tens or hundreds of thousands. A broker helps you navigate that.

Five Deposit Strategies to Match Today’s Loan Sizes

Larger loans often mean larger deposits, unless you approach it strategically. Here are five smart ways to either reduce the deposit needed or accelerate your savings:

1. Consider Low-Deposit Borrowing

Some lenders offer options with less than a 20% deposit, especially if you’re eligible for Lenders Mortgage Insurance (LMI) waivers or discounts.

2. Use a Guarantor Loan

A family guarantor, such as a parent, can reduce your deposit requirement to as low as 5%, and in some cases, 0%.

3. Buy with a Partner, Family Member or Friend

Pooling resources can make homeownership more accessible. Just make sure to have a clear legal agreement in place.

4. Explore the Home Guarantee Scheme

This federal initiative allows eligible buyers to purchase with just a 5% deposit and no LMI, significantly lowering upfront costs.

5. Ramp Up Your Savings Rate

Track your expenses, review your budget, and look for ways to grow your income. Small tweaks now can add up quickly over time.

With home loan sizes at record highs, the right strategy can make a world of difference. Regardless of if you’re a first-home buyer, upsizing, or refinancing, Peel Finance Brokers ensures you get the right loan for your circumstances, not just the one the bank is offering. If you’re ready to explore your options, contact us to chat about what’s possible for you in today’s market.

Related posts:

• The State of the Rental Market and How It Affects Your Borrowing Capacity
• When Is a Good Time to Refinance?
• Why Use a Mortgage Broker for Your Home Loan?