Owner-occupiers are stepping up in the property market as investors are stepping down, according to new data from the Australian Bureau of Statistics, while average loan sizes now range from $465,000 in the Northern Territory to $811,000 in New South Wales.

During the final three months of the year, loan commitments fell 4.5% quarter-on-quarter for investors while rising 2.2% for owner-occupiers, reflecting a changing dynamic in the market.

Mortgage sizes are increasing

Meanwhile, the average mortgage sizes across Australia reached a record $666,000 at the end of 2024, an increase of 8.5% on the year before. NSW now having the highest average mortgage balance at $811,000.

Strategies for saving a home deposit

With rising property prices, saving for a deposit can be challenging. Here are five strategies to help you reach your goal faster or reduce the amount needed:

1. Explore low-deposit loan options – Some lenders offer solutions requiring less than a 20% deposit.
2. Consider a guarantor home loan – A parent or family member could help you secure a loan with as little as 5% (or even 0%) deposit.
3. Co-buy with a partner, family member, or friend – Pooling resources can make homeownership more achievable.
4. Take advantage of government schemes – The Home Guarantee Scheme allows eligible buyers to purchase with just a 5% deposit, avoiding lender’s mortgage insurance.
5. Boost your savings rate – Cutting unnecessary expenses and increasing income can accelerate your deposit goal.

Government Moves to Ease Mortgage Access for those with Student Debt

Treasurer Jim Chalmers has directed financial regulators to ease mortgage lending restrictions for Australians carrying HELP-HECS debt.

Currently, the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) require lenders to factor student loan repayments into home loan assessments. However, Dr. Chalmers has proposed allowing lenders to exclude HELP repayments from serviceability calculations if the borrower is expected to clear their debt in the near future, as reported by the Australian Financial Review.

“I’ve discussed these changes with regulators and convened the banks to implement them,” Dr. Chalmers stated. “Australians with HELP debt deserve fair treatment when seeking home loans, and we’re working to ensure they get it.”

While no timeline has been set for implementation, I can help you assess your borrowing capacity under current rules and estimate your potential borrowing power once the changes take effect. Get in touch to explore your options.

Surge in Car and Personal Loans as Consumers Embrace Big-Ticket Purchases

In 2024, Australian consumers took out car loans at an unprecedented rate, driven by record-breaking vehicle sales. A total of 1,220,607 new cars hit the roads, with Toyota, Ford, Mazda, Kia, and Mitsubishi leading the market, according to the Federal Chamber of Automotive Industries.

This surge in demand saw car loan commitments reach a record $4.7 billion in the December quarter — a 13% increase from the previous year, as reported by the Australian Bureau of Statistics.

Beyond vehicles, personal loans also soared by 25.9% to $3.9 billion, fueling purchases of holidays, household goods, and other consumer items.

If you’re considering financing a car or major purchase, reach out today to explore whether a car loan or personal loan could be a smarter alternative to credit cards.

How We Can Help 

If you’re ready to explore your financing options or want to discuss strategies for leveraging borrowing opportunities, get in touch with us today. Our Financing and Loans service is designed to help businesses navigate these opportunities with confidence. From identifying the most suitable financing options to securing competitive rates and managing repayment strategies, SCM’s team of experts can tailor solutions to fit your unique needs.

Steven Papanastasiou – Principal, SCM Finance Solutions