Borrowers face higher costs as property values and loan amounts climb
Mortgage holders are now paying almost twice as much on their home loans as they were a decade ago, as both average loan sizes and property values have risen sharply, according to new analysis from financial comparison site Mozo.
Monthly repayments on the average home loan have increased from $2,214 in June 2015 to $4,383 in June this year, representing an extra $71 per day for borrowers over 10 years. The average new home loan amount has also jumped 69% during the same period, rising from $389,939 in 2015 to $659,922 in 2025, based on data from the Australian Bureau of Statistics.
Separate data analysis from property research group Cotality has shown that house prices in major cities have seen substantial growth over the past decade. Brisbane and Adelaide have both reached new record highs, with prices rising 91.2% and 93.6% respectively. Sydney home values are now 61.6% higher than 10 years ago, while Perth has also hit a peak, up 55.6% since 2015.
Mozo’s research indicates that the potential savings from refinancing have also grown. Borrowers with a $500,000 loan could save up to $373 per month by switching from the average variable rate to the lowest available rate in the current market, amounting to $4,476 in the first year.
In June 2015, the same move would have saved $180 per month. While the difference between average and lowest rates is now more than double what it was a decade ago, it remains below the 2023 peak of $476 per month.
Rachel Wastell (pictured right), finance expert at Mozo, said borrowers should be proactive in the current mortgage environment. She pointed out that while the Reserve Bank of Australia has begun to cut rates, lenders may not necessarily pass on the full reductions to customers.
“After 13 hikes, borrowers were hoping for a bit of relief. But if the banks aren’t moving, you’ll have to move yourself,” Wastell said. “Switching could be the only way to lower your rate and get your budget back on track.
“Even if rates fall dramatically, that won’t change the fact Australians are now carrying significantly more debt than they were 10 years ago. The best way to save on your home loan isn’t to wait for a rate cut, or rely on future cuts, it’s to proactively compare and switch.
“Property prices might drop, but average loan sizes rarely shrink in a meaningful way. So if you want to cut costs, switching is still one of the smartest moves you can make.”
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