4 Longford Crescent, Ferryden Park is listed for sale.

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Aussie homeowners may have to spend an extra $107,500 on their mortgage after interest rates hikes in the past year.

New research from Money.com.au revealed mortgagees will pay an additional $3586 a year on their home loan repayments after the typical variable interest rate rose from 6 per cent to 6.27 per cent in the last 12 months.

The average loan size also increased from $547,696 to $581,467, according to the Reserve Bank of Australia (RBA).

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And with a typical 30-year mortgage, this adds up to a whopping $107,500 more in interest over the lifetime of the home loan.

Money.com.au research and data expert Peter Drennan said Australian homeowners were navigating uncharted territory amid the ongoing housing market squeeze.

“Homeowners are being hit with a perfect storm — interest rates at a 13-year high, skyrocketing property prices forcing buyers into larger mortgages, and more borrowers entering the market,” Mr Drennan said.

“As a result, homeowners are collectively paying record amounts of interest to banks.”

11 Menzies Close, Narre Warren South is listed for sale in Victoria’s south east.

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The five-bedroom house has a $860,000-$920,000 price guide — around Greater Melbourne’s median house price of $860,000, according to PropTrack.

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He added that the booming markets in Western Australia and Queensland especially had driven a sharp rise in both the number of loans and the average loan size, significantly contributing to the overall surge in interest payments to the banks.

Last year, Queensland homeowners were spending $2879 a month to service their mortgage, but now were paying $3291 — an extra $412 a month, the biggest jump of any state and territory.

Northern Territory mortgagees only need to fork out at extra $15 a month after their average monthly home loan repayments rose from $2432 to $2446 in the past year.

Western Australia, South Australia, and New South Wales property owners are paying $335 or more a month on their loan commitments, whereas Victoria, ACT and Tasmania are having to fund an extra $109-$172 a month.

83 Telopea St, Redfern is listed for sale.

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The two-bedroom house has a $1.5m price guide — close to Greater Sydney’s median house price of $1.426m, according to PropTrack.

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Mortgage Choice Berwick mortgage broker David Thurmond said a lot of his clients were just making ends meet, so the majority of their cash was being directed towards their home loan instead of every expenses.

“So less vacations, less going out, less fun,” Mr Thurmond said.

“We’re just seeing a decrease in spending and clients just aren’t upgrading like they once were.

“When interest rates were at 2 per cent, clients were upgrading to bigger and better homes on a regular basis and now not so much.”

He noted that for prospective property purchasers, interest rate hikes had made it harder to borrow money.

“When interest rates do come down and it’s easier for people to borrow, my expectation is the values of properties will go up and they’ll go up quite fast,” he said.

State/Territory – Last Year – This Year – Difference ($)

QLD – $2879 – $3291 – $412

SA – $2566 – $2953 – $387

NSW – $4128 – $4484 – $356

WA – $2621 – $2955 – $335

VIC – $3328 – $3500 – $172

ACT – $3456 – $3597 – $141

TAS – $2482 – $2591 – $109

NT – $2432 – $2446 – $15

Source: Money.com.au

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