The typical home loan taken out by an Aussie homebuyer surpassed $636,000 in June - a 10% year-on-year increase, according to new figures from the Australian Bureau of Statistics (ABS).

That was largely due to record mortgage borrowings in Queensland, Western Australia, and South Australia.

The average owner-occupier home loan taken out in the three respective states reached $599,000, $566,000, and $546,000 in June.

But it was mortgages in NSW that took the crown, leaping to an average size of more than $780,000.

Considering Reserve Bank of Australia (RBA) data shows the typical new variable-rate home loan signed in May boasted an interest rate of around 6.30% p.a., here's what such borrowing behaviour might be expected to cost a homeowner each month:

Home loan borrowings

Monthly repayments at 6.30% p.a.*

$550,000

$3,404

$600,000

$3,714

$650,000

$4,023

$700,000

$4,333

$750,000

$4,642

$800,000

$4,952

Figures courtesy of Your Mortgage's Home Loan Repayment Calculator

*Assuming 30-year loan term and principal and interest repayments

Investor lending back with a bang

Though, owner-occupiers were just a portion of the uptick in housing lending Australia has experienced over the past 12 months.

"Investor lending growth continued to outpace the growth of owner-occupiers in June," ABS head of finance statistics Mish Tan said.

"The total value of new investor loans was 30.2% higher compared to a year ago, while for owner-occupiers it was 13.2%."

Investors also tended to borrow more, on average, than owner-occupiers, with those in NSW typically borrowing around $818,000 to purchase a property.

House prices reach new record high

As borrowing picks up, so too are house prices, with the national median dwelling value reaching yet another record high in July, according to new figures from CoreLogic.

The median property value down under has met a new record high every month since November 2023, rising to more than $798,000 last month.

However, soaring house prices are beginning to look like a tale of three cities.

Property prices continued to climb at a rapid pace in Perth, Adelaide, and Brisbane last month amid an ongoing supply crunch, while those in Melbourne, Hobart, and Darwin dipped into the red.

"The number of homes for sale in Brisbane, Adelaide, and Perth is more than 30% below average for this time of the year, while weaker markets like Melbourne and Hobart are recording advertised supply well above average levels," CoreLogic research director Tim Lawless said.

Affordability challenges now appear to be driving prices higher in cheaper segments of most markets, with prices for units tending to grow at a faster pace than those for houses.

"Most cities now have a median house value that is at least 1.5 times higher than the median unit value," Mr Lawless said.

"With stretched housing affordability, lower borrowing capacity and a lift in both investor and first home buyer activity, it's not surprising to see the unit sector outperforming for a change."

RBA tipped to hold cash rate next week

Following an inflation read on par with the RBA's own forecasts, consensus appears to be that the central bank's board will hold the cash rate when it meets early next week.

The cash rate tends to dictate the interest rates charged to home loan borrowers, and it's currently at a 12-year high of 4.35%.

The RBA board will begin its two-day meeting on Monday before announcing its cash rate decision on Tuesday afternoon.

Economists at all the big four banks alluded to the potential of a rate hike prior to the release of this week's inflation data, and such concerns now appear to have gone out the window.

Indeed, experts at both CommBank and Westpac doubled down on their expectations that the cash rate could be cut as early as November.

That's largely due to expectations that government rebates could take the sting out of energy prices in the three months ended September.

If that is the case, it could drag inflation back into the RBA's target range later this year.

One in twenty ASX traders appeared to believe a cash rate cut could be on the cards next week when the market closed on Wednesday, with the remainder predicting a hold.

ANZ and NAB continue to expect the cash rate to stay at its current level until February and May respectively.

Image by wirestock on Freepik

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