Here are the average amounts Australian households are paying to service their mortgages

Photo: William West/AFP/Getty Images

Have you ever wondered what is the average mortgage size across Australia’s eight capital cities, and who is having to pay the largest proportion of their disposable household income in servicing their mortgage?

The Commonwealth Bank has the answer in this table, based on various data releases and estimates from the bank.

Source: CBA

Unsurprisingly, Sydney, Australia’s most expensive housing market, has the highest average loan size, monthly loan repayment and proportion of household disposable income going towards servicing it.

At the other end of the spectrum, Hobart, the cheapest capital in terms of house prices, has the lowest average mortgage size and monthly repayment.

Mortgage holders in Canberra, despite living in Australia’s third-most expensive housing market, pay the lowest average proportion of their household disposable on mortgage repayments at just 14.1%, a factor undoubtedly assisted by the the city being home to some high income earners.

“There appears to be some high average household disposable incomes in Canberra,” says Michael Workman, senior economist at the CBA.

As for the gap between house prices and average mortgage size, Workman says that most loans are for households “trading up” to a more highly priced dwelling, using equity built up from prior loan repayments and price growth as a deposit on their next property.

He also points out that these are only averages, and clearly not reflective of individual circumstances.

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