New South Wales Faces Steepest Climb in Mortgage Payments

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Research conducted by the Real Estate Institute of Australia highlights a bleak milestone for New South Wales as alarming figures demonstrate that families are now allocating an average of 58.5% of their weekly income to service home loans. This surge has caused mortgage repayments to swell, with a noticeable uptick of about $800 monthly compared to figures from the end of the previous year.

The predicament for renters in New South Wales also remains distressing. Although there's been a slight dip in costs, the proportion of median family earnings required for rental payments continues to eclipse that of other regions, with nearly one-third - 27.3% - of income devoted to rent.

In contrast, Victoria, New South Wales’s neighbour, presented a moderately brighter scenario despite experiencing its own slide in both rental and housing affordability in the concluding quarter of 2023. Victorians found themselves committing 46.8% of their weekly earnings to mortgage repayments, up by 1.6% from the prior quarter.

Meanwhile, statistics show the Sunshine State of Queensland occupying the third rank in affordability pressures, with home loans consuming 45.1% of family incomes and rent, 22.3%.

Closely tracking Queensland are South Australia and Tasmania where the portion of family incomes servicing loans stands at 44.3% and 43.4%, respectively.

Conversely, the Northern Territory and the Australian Capital Territory (ACT) emerged as regions with a more manageable impact on weekly incomes. In particular, the ACT’s inhabitants allocated less than one-fifth of their income to rent and just over one-third to mortgage repayments. Highlighting the disparity, ACT families typically boast a weekly income surplus of nearly $800 compared to those in New South Wales and face considerably smaller home loan principals.

The affordability index improves further when considering the Northern Territory and Western Australia. Families in these regions enjoy relatively lesser financial strains, dedicating 33% (NT) and a marginally higher portion of their income in WA to loan obligations, with WA seeing a $600 monthly increase from the previous year.

• ACT typically commands higher incomes and smaller loan amounts compared to New South Wales.
• The Northern Territory households spend approximately 33% of their weekly income on home loan repayments and 24% on rent.

Fresh insights into market dynamics reveal an impressive 16.8% surge in first-time homeowners within the final trimester of 2023. Approximately 31,445 families forged ahead into homeownership, with the prospective buyer influx peaking in New South Wales, despite daunting affordability metrics. Nevertheless, Victoria outpaced all with both the highest count of first-time buyers and the acquisition of new home loans.

While South Australia, Tasmania, Western Australia, and the ACT enjoyed growth in homebuyer numbers, Queensland and the Northern Territory maintained consistent figures.

Published:Sunday, 17th Mar 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Finance News

Clear

Why Personal Loan Pricing Is Still Uneven for Australians

12 Aug 2026: Paige Estritori

Recent personal loan market updates suggest Australian borrowers are seeing more competition in some parts of the lending market, but the benefits are not being shared evenly. Secured borrowers with stable income and strong repayment histories may find sharper advertised rates, while people applying for unsecured loans, short term loans or specialist bad credit loans still face a more complicated pricing picture. - read more

Why loan affordability matters as rate pressure lingers

04 Aug 2026: Paige Estritori

Recent personal lending updates from Australia’s loan comparison market suggest borrowers are still facing a mixed environment. While some advertised rates have become more competitive, unsecured personal loan pricing remains uneven, especially for applicants who do not fit a mainstream bank profile. For Australians with limited credit history, casual income, self-employment or past repayment issues, the headline rate is only one part of the decision. - read more

Debt Consolidation Demand Rises as Households Juggle Repayments

28 Jul 2026: Paige Estritori

Debt consolidation is moving back into focus as Australians continue to balance higher living costs, credit card balances, buy now pay later commitments and personal loan repayments. Recent finance sector commentary suggests more borrowers are looking for ways to simplify their debts, not necessarily to borrow more, but to make existing obligations easier to manage. - read more

ASIC’s Private Credit Warning: What It Means for Borrowers

21 Jul 2026: Paige Estritori

Australia’s fast-growing private credit market is again under the regulatory spotlight, with ASIC warning that borrowers, investors and superannuation members may be more exposed to private lending risks than many realise. The latest concern centres on a sector that has expanded as banks have become more selective, especially in areas such as property development, construction finance and specialist business lending. - read more

HSBC Penalty Puts Scam Protection Back in the Spotlight

23 Jun 2026: Paige Estritori

HSBC Bank Australia has been ordered to pay a $35 million penalty after admitting serious failures in how it protected customers from scams. The case is significant because it moves beyond warning consumers to be alert and places stronger focus on the systems banks use to detect, prevent and respond to unauthorised transactions. - read more

Surge in Personal Loan Borrowing as Australians Face Rising Living Costs

16 Jun 2026: Paige Estritori

In the first quarter of 2026, Australians borrowed a record $5.1 billion in new personal loans, reflecting the mounting financial pressures from escalating living costs. This significant increase underscores the challenges many individuals face in managing daily expenses. - read more

OnDeck Boosts Lightning Loan Limits to Empower Australian SMEs

16 Jun 2026: Paige Estritori

OnDeck Australia has announced an increase in its Lightning Loan limits, now offering up to $300,000 in unsecured funding for small and medium-sized enterprises (SMEs). This enhancement aims to meet the growing demand for quick and accessible business financing. - read more

Australian Businesses Show Renewed Confidence with Increased Credit Demand

16 Jun 2026: Paige Estritori

In December 2025, Australian businesses demonstrated a significant increase in credit demand, with applications rising by 5.1% compared to the previous year. This uptick suggests a shift from cautious financial management to proactive investment in growth and expansion. - read more

RIC's New Financial Support for Australia's Primary Producers

09 Jun 2026: Paige Estritori

The Regional Investment Corporation (RIC) has announced the introduction of two new low-interest loan products aimed at supporting Australian farmers and fishers grappling with the adverse effects of drought and harmful algal blooms. This initiative reflects the government's commitment to bolstering the resilience of the nation's primary producers in the face of environmental challenges. - read more

Dashdot's Sudden Collapse: Impact on Australian Property Investors

09 Jun 2026: Paige Estritori

In a significant development within Australia's property investment sector, buyer's agency Dashdot has collapsed, leaving hundreds of clients financially impacted. This event has raised serious concerns about the practices and stability of buyer's agencies operating in the country. - read more

Click for more Finance News