ave loan size

As per the article below, the ave loan size written in 2009 was $304,000

So is this really 10 x a households income as some naysayers believe is the case?

or even 9 x or 8 x or 7 x or 6 x ?

Is it even 5 x?

Ave gross income of 90k (about 70k net income)

So lets say 4 and a bit up to 5.

Amazing when u get down to nitty gritty on mortgage sizes and not just guess based on current house prices.

We arent all first home buyers.



www.lendingcentral.om.au

The average home loan in Australia increased eight per cent during 2009, according to a leading mortgage broker.

Loan Market Groups National Manager for Operations and Risk, Ivan Karamatic, said an analysis of loans settled by the group had found the average loan size had risen from $281,818 in December, 2008, to $304,266 in December, 2009.

Mr Karamatic said the increase in the average level of housing debt was in line with the rise in property prices over the past 12 months.

The median price for property in Australia rose by 11.3 per cent last year which confirms the underlying reason for the increase in the average loan size, he said.

As the year progressed there was also a boost in consumer confidence.

A lot of experts were predicting a year ago that the property market would take a big hit during 2009 with house prices falling dramatically due to the global financial crisis.

But government economic stimulus measures such as boosting the First Home Owners Grant helped buffer residential real estate markets.

The massive increase in first time buyers as a result of the expanded grant scheme actually stimulated the residential property sector, particularly at the lower to middle end of the market.

Another fillip for consumer confidence was that the Australian economy avoided the recession which affected most other western nations, and unemployment didnt reach the high levels predicted by some economists.

Mr Karamatic said the average home loan size was expected to continue rising this year despite the First Home Buyer Grant returning to its normal level.

Finance is harder to obtain with the major banks tightening their lending regimes, but demand is still likely to be strong, he said.