How the typical Aussie mortgage has risen over past 25 years: Aussie/CoreLogic

The average size of the Australian home loan has increased by 376% over the past 25 years.

The average loan size has broadly increased in line with dwelling prices across Australia, with the typical loan size reaching $388,100 in 2018 according to a report released last month by AHL Investments (Aussie Home Loans).

"The average size of a mortgage across Australia has increased roughly in line with dwelling values over the past quarter of a century, with the annual rate of increase tracking at 6.4% per annum compared with national house values rising at 6.8% per annum and national unit values rising at 5.9%," the report stated

The average loan size for owner occupiers across Australia, based on data to March 2018, was $388,100, having increased from just $81,500 25 years ago.

The report notes it was not surprising to see a wide range in the average loan size between the states which is reflective of the diversity in housing values.

"The largest loan sizes are originating in New South Wales where housing values tend to be the highest, while average loan sizes are the smallest in Tasmania at just $252,100."

Despite loan sizes increasing approximately in line with the housing cycles, mortgage rates have fallen dramatically over the same time frame, which has resulted in improved levels of mortgage affordability.

Some 25 years ago, the average standard variable mortgage rate was recorded at 10.0% compared with an average standard variable mortgage rate of 5.2% in April 2018.