Queensland’s mortgage crisis comes to light as repayments rise by $22,000 a year – realestate.com.au

Queensland homeowners have been hit by the biggest jump in loan repayments in the past decade, according to new data that puts the housing market’s affordability crisis into sharp focus.

The alarming new figures show that homeowners in the state are spending $22,000 more annually on the average home loan, compared to the national increase of $19,000.

Compare the market analysis that showed monthly mortgage payments in each state in 2025, based on loan size and average variable rate, compared to 2015.

With the average size of loans doubling in parts of the country, repayments have skyrocketed despite similar interest rates a decade ago.

Repayments have skyrocketed, despite similar interest rates to ten years ago

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In the Sunshine State, the average home loan rose from $358,000 in 2015 to $687,000 last year, a 92 percent increase.

Queenslanders paid an average of $3,901 a month in 2025, up from $2,024 a decade ago – a peak of $1,877.

NSW recorded the next highest monthly increase of $1,824, from $2,877 to $4,701, while loan sizes rose the most in the past decade in Tasmania (103 percent) and South Australia (99 percent), according to the analysis of Australian Bureau of Statistics (ABS) figures.

The data showed the difficult path to homeownership, Winter said

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Compare market property expert Andrew Winter said the data showed the struggle to crack the heated property market was not necessarily the biggest challenge facing homeowners.

“So often the emphasis is on attracting a down payment, but for many the real challenge begins when they start paying off their loan,” Winter said.

“Repayments on average homes in our capital cities are not cheap and for many working Australians they are simply not affordable.”

Real Estate Institute of Queensland CEO Antonia Mercorella said demand for property had increased “exponentially” and was outpacing housing supply across the state.

“Record levels of interstate migration to Queensland combined with local demand, low unemployment, relatively low interest rates, a tight rental market, high consumer confidence and the Olympic Games on the horizon have all been fundamental factors behind the strength and pace of property price growth in our state,” Ms Mercorella said.

Demand exceeded supply across the country

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Melinda Jennison, president of the Real Estate Buyers Agents Association of Australia, said the affordability crisis was affecting both first home buyers and existing homeowners.

“For existing homeowners, higher repayments mean more of the household income goes towards the mortgage, reducing discretionary spending and leaving less cushion for cost-of-living shocks.”

She also noted that “compromise purchasing” is happening as first-time buyers beat limited borrowing power by opting for smaller homes, attached homes or moving further away, while some households are delaying upgrading altogether.

Ms Mercorella said those looking to upgrade or downsize are reluctant to sell because of the challenge of buying back in such a tight market.

New buyers shifted to townhouses and units

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Inovayt financing broker Andre Dixon noticed a shift in buyer behavior.

“Borrowers are much more involved in their finances. People review loans more often and focus on what is comfortable, not just what the bank will approve.”

Mr Dixon said first home buyers have also become more strategic with their search.

“Higher repayments haven’t stopped demand. First home buyers are adjusting their expectations, considering different suburbs or property types, and using incentives more effectively.”

Mr Winter tipped off a wave of homeowners looking to refinance if the RBA raised rates again.

With the official cash rate at 3.6 per cent, a single 0.25 per cent move by the Reserve Bank of Australia (RBA) could add $110 to the monthly repayments on an average $694,000 loan – that’s $1,320 more per year.

Buyer’s Agent Melinda Jennison. Photo: supplied

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“If cash rates rise again this year, I think a lot of people will really feel it. As the cost of owning a home becomes even more expensive, we need to make the most of the few ways we can save by looking for a better home loan,” Winter said.

Mr Dixon said more homeowners are using estate agents to explore their options, rather than going straight to a bank.

“A loan review, a better structure or a refinancing can quickly relieve the pressure.”

Brisbane would remain at record levels of unaffordability

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Ms Jennison expected Brisbane to remain at record levels of unaffordability, with demand shifting to smaller homes and outer ring locations.

“Yet the main problem in Brisbane is still a shortage of supply. When supplies remain tight and demand remains high, price pressure often persists.”

Building more homes was crucial, Ms Mercorella said: “If we want a future where home ownership remains achievable, governments must remain firmly committed to boosting the supply of new homes and supporting first home buyers.”