As of November 2024, the average remaining home loan balance was the highest in New South Wales, with an average outstanding balance of around ******* Australian dollars. In comparison, the average outstanding mortgage balance in Western Australia came to approximately ******* Australian dollars.

Australia Residential Mortgages: ADIs: Credit Outstanding data was reported at 2,288,546.400 AUD mn in Sep 2024. This records an increase from the previous number of 2,262,093.500 AUD mn for Jun 2024. Australia Residential Mortgages: ADIs: Credit Outstanding data is updated quarterly, averaging 2,000,551.000 AUD mn from Mar 2019 (Median) to Sep 2024, with 23 observations. The data reached an all-time high of 2,288,546.400 AUD mn in Sep 2024 and a record low of 1,790,106.800 AUD mn in Mar 2019. Australia Residential Mortgages: ADIs: Credit Outstanding data remains active status in CEIC and is reported by Australian Prudential Regulation Authority. The data is categorized under Global Database’s Australia – Table AU.KB024: Residential Mortgage: Credit Outstanding.

Mortgage lenders are dealing with the RBA's shift to a tighter monetary policy, as it fights heavy inflation. Since May 2022, the RBA has raised the benchmark cash rate, which flows to interest rates on home loans. This represents a complete reversal of the prevailing approach to monetary policy taken in recent years. Over the course of the pandemic, subdued interest rates, in conjunction with government incentives and relaxed interest rate buffers, encouraged strong mortgage uptake. With the RBA's policy reversal, authorised deposit-taking institutions will need to balance their interest rate spreads to ensure steady profit. A stronger cash rate means more interest income from existing home loans, but also steeper funding costs. Moreover, increasing loan rates mean that prospective homeowners are being cut out of the market, which will slow demand for new home loans. Overall, industry revenue is expected to rise at an annualised 0.4% over the past five years, including an estimated 2.2% jump in 2023-24, to reach $103.4 billion. APRA's regulatory controls were updated in January 2023, with new capital adequacy ratios coming into effect. The major banks have had to tighten up their capital buffers to protect against financial instability. Although the ‘big four’ banks control most home loans, other lenders have emerged to foster competition for new loanees. Technological advances have made online-only mortgage lending viable. However, lenders that don't take deposits are more reliant on wholesale funding markets, which will be stretched under a higher cash rate. Looking ahead, technology spending isn't slowing down, as consumers continue to expect secure and user-friendly online financial services. This investment is even more pressing, given the ongoing threat of cyber-attacks. Industry revenue is projected to inch upwards at an annualised 0.8% over the five years through 2028-29, to $107.7 billion.