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Home loan repayments double over decade

Home loan repayments double over decade

Recent data has shown a 98 per cent increase in average home loan repayments since 2015.

As revealed in a study by Mozo, the average home loan repayment in 2025 was $2,214 each month.

As of 2025, that figure has climbed to $4,383 per month – a 98 per cent increase. This equates to an extra $71 each day.

Coinciding with these inflated mortgages is the average home loan size. As of 2015, it was $389,939. In 2025, the average is $659,922, a 69 per cent increase.

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Rates have increased dramatically, with the average variable rate on the Mozo database sitting at 4.71 per cent in 2015. The current average is 6.32 per cent.

Borrowers are becoming more cognisant to the power of shopping around.

Potential savings on monthly repayments have increased by 108 per cent since 2015, rising from $180 each month to $373 per month currently. This is equivalent to over $4,400 a year.

The most lucrative time for refinancing was in 2023, at the height of the RBA rate hike cycle, with savings of $476 each month.

Rachel Wastell, Mozo’s personal finance expert, said the modern mortgage market is nothing like it was a decade ago.

“Borrowers aren’t just feeling the impact of thirteen rate hikes in under two years, they’re carrying the weight of a decade of rising home loan sizes and relentless repayment pressure,” commented Wastell.

“While some borrowers might be waiting on RBA rate cuts, they need to remember that these incremental changes can’t rewrite history.”

Wastell urged borrowers to adjust to the new landscape of lending. Refinancing loans is as important as ever to secure the best deal possible.

“Home loans have become far more expensive, but the reward for switching has never been greater. This is why it’s crucial for borrowers to stop assuming loyalty is rewarded, and start comparing,” she added.

Between 2015 and 2025, each state recorded an average home loan amount increase of:

  • Tasmania: $231,048 to $487,020 (111 per cent increase)
  • South Australia: $292,232 to $590,887 (102 per cent increase)
  • Queensland: $344,915 to $641,435 (86 per cent increase)
  • NSW: $467,132 to $794,831 (70 per cent increase)
  • ACT: $387,842 to $615,660 (59 per cent increase)
  • Victoria: $396,939 to $627,744 (58 per cent increase)
  • Western Australia: $383,053 to $594,250 (55 per cent increase)
  • Northern Territory: $388,724 to $487,573 (25 per cent increase)

“Borrowers in places like Queensland, South Australia and Tasmania have experienced more than just the impact of rising rates, loan sizes have exploded as borrowers look beyond traditional hot spots just to get a foot on the property ladder,” said Wastell.

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