What Is The Average Home Loan In Sydney?

October 30, 2022
Mortgage Brokers vs. Banks

Unless you’re a multi-millionaire, the road to your dream home often leads through a lending agency. That can vary depending on the property of your interest. That’s why it’s imperative to keep up to date on the question, “What is the average home loan in Sydney?”

While it is a particular value, the average home loan rate can tell you plenty about any area. You only need to try out buying state-owned property in Brisbane to realise the difference. If you want to understand it better, this is just the guide you need.

Breakdown of an average mortgage in Australia

Most people think of a mortgage as a monthly payment that gets them one step closer to ownership. However, the bank calculates it as a cumulative of several parts.

  • Principal: This is the amount that goes to the actual amount of the house. It usually makes up more than 60% of your mortgage payment.
  • Interest: It is the amount you accumulate on your principal minus the down payment. It may differ for various agencies.
  • Taxes: All the property assessments that go to the local government constitute the taxes in your average mortgage repayments. Most lending agencies usually hold them in an escrow account right up until the due date.
  • Insurance: Your mortgage insurance is the amount you pay to protect your property against accidental damage due to storms, fires, or earthquakes. It also includes protection against your mortgage from rising too high in case of an economic collapse.

Types of home loans in Sydney

Before you know how much for a mortgage payment you need in Sydney, you need to decide on which type of home loan suits you best.


An investor loan is most applicable to those who want to own a property as an investment option. In case you plan to rent out your property right after taking possession, then this is the appropriate loan type for you.


Owner-occupier loan applications are for those who want to live with the average family size in Australia. Such loans focus more on the welfare of inhabitants instead of loan tenure or returns.

Interest rates on home loans in Sydney

What Is The Average Home Loan In Sydney

The average size house in Australia can have varying rates for a mortgage depending on the real estate market. As of August 2022, the home loan rates and average payments are described in the table below.

Average home loan rate in Australia5.06% p.a. (1-year fixed), 4.97% p.a. (variable)
Average loan size for first-home buyers$476,254
Average loan size for non-first-home buyers$642,534
Average mortgage repayments in NSW$3188
Average mortgage repayments in Sydney$3345
Average home loan rate in Sydney5.04% p.a. (1-year fixed), 4.54% p.a. (variable)
Average home loan in NSW$725,335

Factors that affect the average mortgage repayments in Sydney

What Is The Average Home Loan In Sydney

Sydney is a desirable location in Australia, both in terms of business and the environment. It has a major port that links to valuable trade routes and pleasant weather for most of the year. No wonder people often Google ‘what is the average home loan in Sydney.’

Yet, the value remains hard to determine for the near future as it depends upon several factors. Some of the most influential ones include the following.

Median house prices

Since the principal amount is the highest denominator for the average mortgage payment, it highly affects the average home loan rate. With the pandemic subsiding, many homebuyers are willing to buy a home in Sydney, increasing the average monthly payment.

Average household income

People will not splurge on a new house if they’re still struggling with essentials. That was until the height of the pandemic and the lack of tourism in the city. With more people coming over, property investors and owners alike can pay more once the economy recovers.

Standard government rates

The Reserve Bank of Australia sets the inflation and exchange rates every month. Those also translate to your mortgage payments since it affects the taxes banks collect from you.

Those rates also vary with the area. You might find that the home loan rates are largely different for Brisbane real estate from Sydney real estate. 

Trade and stock market

Ever since an early age, the economy has depended upon the exchange of goods with other nations. It’s no different today. While the Australian economy took a hit by the supply chain crisis, it is slowly recovering from the damage with increased exports.

The stock market contains several large corporations that control both the production capacities and construction equipment for real estate in Sydney. Therefore, their stock prices directly affect the home loan rates available from a bank.

Environmental factors

What Is The Average Home Loan In Sydney

Physical measures such as temperature, humidity, and rainfall also affect what is the average home loan in Sydney. You might notice a sharp decline in payments as hurricanes and tidal waves ravage the coastline. Many prospectors are betting against the rise due to the intensifying effects of global warming.

That also translates to individual contribution. For instance, cutting down trees on your property Brisbane can drastically reduce the value of the property in addition to attracting heavy fines.

Looking for your dream home?

Regardless of the type of property in Sydney you desire, Soho can help you out in any department. You can browse our search page to check out some fantastic listings available in all available suburbs. But you need not stop there. You can download our app to get the whole Soho experience.

Just remember to shortlist or swipe left on our listings so we can send you others that better match your preferences. Additionally, we can keep you updated on what is the average home loan in Sydney, along with other valuable information pieces.

Soho is your expert team in Australian real estate, offering an innovative platform for effortless property searches. With deep insights into buying, renting, and market trends, we guide you to make informed decisions, whether it's your first home or exploring new suburbs.
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Our AI match engine will match you with over 150,000+ properties and you can swipe away or shortlist easily. Making your home buying journey faster and easier.