3. Current home loan rates and sizes

Our position today

The RBA is always lagging on real time market data. Their latest reporting has new loans at 5.20 - 5.65% based on February 2022 figures.https://www.rba.gov.au/statistics/interest-rates/

The award-winning financial comparison site Mozo had the average home loan at 5.86% as the average variable rate before the 07/03/2023 rate hike of 25 basis points.

https://mozo.com.au/home-loans/interest-rates

Meaning with this 0.25% hike we will be sitting around 6.11%. We are just using 6.00% for our comparison. I still see many borrowers with rates on their current home loans above 6.50%, unfortunately many can’t afford to refinance their debts. If you are paying over 5.30% reach out and we can offer a free refinance comparison, qualify you a find you the best deal in the market to improve your position. www.forgetthebanks.com.au.

The Average loan size today is around $650,000 with some estimates have it as low as $618,000 and as high as $750,000.

For our estimates and calculation we have stuck to the low side at $618k to push the bias the wrong way.

In 1990 we had loan sizes where estimate on average as low as $67,700, and as high as $71,000. ($71k estimate)

For our estimate we have stuck to the high side at $71k, again to decrease the results of our findings.