Repayments fall for first time in over three years
Monthly mortgage repayments have fallen for the first time in more than three years, according to the Westpac-DataX Consumer Panel Update for the first quarter of 2025.
The data shows an easing, albeit minimally, of pressure for homeowners since the Reserve Bank of Australia (RBA) cut the cash rate by a quarter of a percentage point in February.
“Households breathed a sigh of relief when interest rates were cut in February,” said Westpac researchers led by economist Neha Sharma.
“Early insights from our Westpac–DataX Consumer Panel suggests the move is already easing pressure, albeit very slightly, saving the average mortgage holder around $12 a month.”
The current average minimum mortgage repayment is currently sitting between the $2,700 and $2,800 band (see below, source: DataX, Westpac).
Data shows that consumer housing debt has grown since 2021, with the average mortgage balance increasing 9.5% to just over $360,000 by March 2025.
Balances range from $300,000 in Western Australia to $416,000 in New South Wales. Larger balances in eastern states reflect higher house prices and incomes.
Over the past year, average mortgage balances rose 3.7%, in line with the 3.5% increase in national house prices.
In Queensland, South Australia and Western Australia, house prices rose 8.9% to 12.4% year-on-year, but mortgage balances increased more modestly at 4.4% to 5.1%. Among 25–34 year-olds, balances grew 5.2%.
Minimum mortgage repayments have risen sharply since 2022. By January 2024, they were up 42.2%, or $754, while average incomes rose 8.5%, or $641.
By February 2025, average repayments reached $2,741, or 31.3% of income, with a larger burden on lower-income groups.
The RBA, led by Governor Michele Bullock (pictured) is expected to cut rates again this month.
