Australian Mortgage Arrears Fall: What This Means For Home Buyers
Fewer Australians are falling behind on their home loan repayments. In fact, the share of Australian mortgage arrears running 30-89 days late dropped from 0.66% in June 2024 to 0.55% in June 2025, according to APRA, the banking regulator.
Put simply, that means more than 99 out of 100 borrowers are up to date with their mortgage repayments – a really positive sign for the property market. Lower interest rates this year have helped ease financial pressure, and many households are managing their budgets better with improved home loan affordability.
Changes in Australian Home Loan Borrowing Patterns
The data also shows borrowers are making different choices with their new home loans:
- Bigger deposits are becoming normal – 69.6% of borrowers had a deposit of at least 20% in June 2025, up from 68.1% the year before. This helps avoid lenders mortgage insurance and reduces borrowing costs.
- Some are maximizing their borrowing power – 5.5% of new loans had a debt-to-income ratio of six times or more, up from 5.0% in 2024. This shows some buyers are stretching their borrowing capacity to enter the property market.
What This Means for Your Home Loan Strategy
This mix shows that while most Australian borrowers are in good financial shape, people approach mortgage lending in different ways. Some want the safety of extra equity and lower loan-to-value ratios, while others focus on maximizing their real estate borrowing power to purchase property sooner.
Understanding your borrowing potential and choosing the right home loan structure is crucial for long-term financial success. Whether you’re a first home buyer planning your deposit, looking to refinance your home loan for a better rate, or wanting to compare mortgage options, having the right strategy matters.
Need Help With Your Home Loan?
If you’d like to talk through your own loan strategy – whether it’s planning a new purchase, understanding your borrowing capacity, refinancing an existing mortgage, or exploring offset account benefits – please get in touch with Awesome Lending Solutions today.