Owner-occupier loans remain the majority of new lending
The total value of new home loans funded in Australia rose by 18% in the December quarter of 2024, reaching $179 billion, up from $153 billion in the same period in 2023, according to the latest data from the Australian Prudential Regulation Authority (APRA).
Owner-occupier loans continued to make up the majority of new lending, accounting for 67% of the total, while investor loans represented about 30%. Loans with an 80% loan-to-value ratio (LVR) remained steady at 31% of new lending.
The average owner-occupier mortgage in Australia stood at $642,121 as of September 2024, according to the Australian Bureau of Statistics (ABS). This marks a 7% increase from the previous year. Over the past decade, the average mortgage has grown by 74%, based on ABS Lending Indicators data.
Loan sizes vary significantly by state, with New South Wales, Victoria and Queensland typically recording higher borrowing amounts than other regions. In New South Wales, the average loan size increased from $780,000 in the September quarter of 2024 to $811,000 in December, ABS figures show.
Among home loan providers, Bendigo Bank ranked highest in customer satisfaction, achieving an 87.7% rating due to its strong focus on customer service, according to Roy Morgan’s latest survey.
ING placed second with an 83% satisfaction rating, recognised for its low fees and competitive interest rates. Macquarie followed closely at 82.9%, benefiting from similar advantages. Suncorp Bank recorded the most significant improvement, rising five percentage points to 79%, while Bankwest saw the biggest decline, dropping 17 percentage points to 72% following branch closures in Western Australia.
Overall, customer satisfaction with Australia’s major banks declined slightly, reaching 73.7% in late 2024, down 0.6 percentage points from the previous year.
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