Have you ever wondered what the size of the total home loan debt is Australia? I’m guessing it’s not something you’ve ever pondered, but the figure was released this week and it’s eye watering.
The answer is more than $2.3 trillion, a new record high, according to new data.
New figures from the Australian Prudential Regulation Authority (APRA) show that the total value of outstanding home loans across Australia’s 126 banks climbed to a record $2.30 trillion in March 2025, following a 0.44 per cent increase from the previous month.
With house prices continuing to soar – now reaching a record median of $825,349, according to property data firm Cotality – the total amount borrowed by Australian property buyers has exceeded $2.3 trillion for the first time.
In this week’s newsletter, we look at the implications of allowing early access to superannuation for the purpose of buying property.
In the last few weeks you have probably received text messages from the various political parties with headline policy statements in an effort to win your vote, with one party promising unfettered early access to superannuation.
Proposals to allow greater access to superannuation for home purchases continue to generate debate, with advocates arguing it could help Australians break into an increasingly unaffordable property market. But while the idea may offer short-term relief for first home buyers, it risks creating far more serious long-term consequences.
Firstly, increasing access to super for housing could inflate property prices even further. Injecting more demand-side capital into the market – especially at a time of limited housing supply – would likely push prices up, not down. This creates a bidding war funded by retirement savings, leaving many buyers no better off than before and potentially locking out future buyers even further.
Secondly, the fundamental purpose of superannuation is to ensure financial security in retirement. Diverting funds away from this objective undermines the long-term sustainability of the super system.
Most Australians already retire with insufficient savings to support a comfortable standard of living. Allowing early withdrawals could deepen this retirement shortfall, leaving more individuals dependent on government pensions in later life.
Critically, superannuation is not a housing affordability policy – it’s a retirement policy. Using it to patch over the symptoms of housing unaffordability does little to address the structural causes.
Rather than raiding retirement savings, policy focus should shift toward boosting housing supply, improving planning frameworks, and exploring targeted assistance for first home buyers that doesn’t erode long-term financial wellbeing.
Early access to super for housing may seem like a helpful leg-up, but it’s a policy lever that trades tomorrow’s financial security for today’s housing pressure. In the end, it risks worsening both.
I have no doubt early access to superannuation will win some votes, however like most things, the cons need to be considered alongside the pros of an idea.
Variable
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR..
1 Year Fixed
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR. At the end of the three year fixed period, the borrowers interest rate will revert to a standard variable rate for the life of the loan.
