Average home loans differ enormously across Australia — but so do wages. To make those differences more useful for people deciding where to buy, Better Places combined the latest official loan-size, earnings and mortgage-rate data into one simple comparison.
The quick answer
New South Wales stands out as the toughest of the large states in this test. Queensland also looks much more stretched than Victoria once its larger average new loan is compared with almost identical full-time earnings. Western Australia, meanwhile, shows why wages matter: its average loan is larger than Victoria’s, but its higher average full-time earnings partly offset that difference.
We combined three recent official datasets:
- ABS average owner-occupier loan sizes for the June quarter 2026
- ABS full-time adult average weekly ordinary earnings for May 2026
- the RBA’s 6.17% average interest rate for new principal-and-interest owner-occupier loans in June 2026
The ABS lending data was released on 14 August 2026 and the earnings data on 13 August 2026.
A simple mortgage pressure test
We asked one deliberately simple question:
If the average new owner-occupier loan in each state or territory were repaid over 30 years at 6.17%, what share of one full-time adult’s average gross monthly wage would the payment consume?
| State / territory | Avg new owner-occupier loan | Approx. 30-year payment at 6.17% | Payment as share of one avg full-time gross wage |
|---|---|---|---|
| NSW | $842,000 | $5,141/mo | 56.3% |
| Queensland | $751,000 | $4,585/mo | 51.9% |
| South Australia | $672,000 | $4,103/mo | 48.1% |
| Victoria | $664,000 | $4,054/mo | 45.8% |
| Western Australia | $720,000 | $4,396/mo | 45.5% |
| ACT | $666,000 | $4,066/mo | 41.0% |
| Tasmania | $516,000 | $3,150/mo | 39.4% |
| Northern Territory | $545,000 | $3,327/mo | 38.7% |
These repayment figures are Better Places calculations, not ABS or RBA forecasts. The scenario assumes a 30-year principal-and-interest loan and holds the June 2026 average new-loan rate constant for calculation purposes.
Why Queensland now deserves attention
Queensland’s average owner-occupier loan was $751,000, compared with Victoria’s $664,000. Yet average full-time ordinary earnings were almost identical: $2,039.70 a week in Queensland versus $2,041.10 in Victoria.
That produces a very different single-wage repayment ratio in our model:
Queensland: 51.9%
Victoria: 45.8%
In other words, the wage difference does almost nothing to compensate for Queensland’s larger average new loan. That is more informative for a potential mover than simply comparing house-price headlines.
Western Australia shows why wages matter
Western Australia had a larger average owner-occupier loan than Victoria — $720,000 versus $664,000 — but WA also had much higher average full-time ordinary earnings of $2,227.40 a week.
Our calculated repayment share therefore comes out almost identical:
WA: 45.5%
Victoria: 45.8%
This is exactly the type of relationship a national house-price ranking misses. A larger loan does not automatically mean a worse location if the income available there is also substantially higher.
NSW remains the toughest of the large states in this test
NSW combines the country’s largest average new owner-occupier loan — $842,000 — with full-time ordinary earnings of $2,108.80 a week.
At the June RBA rate and our 30-year assumption, the modelled payment is about $5,141 a month, roughly 56.3% of one average full-time adult gross wage.
A two-income household can obviously look very different, and real borrowers do not all earn the state average. That is why this figure should not be called an official mortgage-stress rate. It is a location-comparison proxy.
What this calculation cannot tell you
The ABS average loan is not a median house price and does not tell us the borrower’s deposit. Average weekly earnings are not average borrower household income. The RBA rate is an average across new principal-and-interest owner-occupier loans, and actual fixed and variable rates differ.
Taxes, childcare, transport, strata, council rates, insurance and other household costs are also absent.
So this calculation should not answer:
“Can I afford a mortgage?”
It should answer an earlier question:
“Which states deserve a closer look before I decide where to buy?”
Readers deciding between NSW and Queensland can continue with our Sydney vs Brisbane same-income comparison. For broader recurring-cost comparisons across supported cities, use the Better Places Calculator.
The Better Places takeaway
Housing affordability is not just a question of prices. It is the relationship between housing cost and local earning power.
That is why Queensland looks more pressured than Victoria in this test, while Western Australia’s higher wages partly absorb its larger average loan. The useful question is not simply “Where are homes cheaper?” but “Where does my income have the strongest chance of carrying the housing cost?”
Official sources
- ABS — Lending Indicators, June Quarter 2026
- ABS — Average Weekly Earnings, May 2026
- Reserve Bank of Australia — Lenders’ Interest Rates
Photo: Shanjir H | Photo4life AU / Unsplash. Better Places calculations are illustrative planning scenarios, not lending or financial advice.
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