A system for sensing loads in a washing machine is provided. The washing machine includes a tub inside a cabinet. The tub encloses a washer basket and an agitator. The washing machine further includes a motor for rotating the basket and the agitator about a spin axis, and a suspension system for supporting the washer basket so that the washer basket travels along a travel axis based on the load in the washer basket. The system includes a magnetic source attached to a lateral section of the washer basket for producing a magnetic field. A sensor is attached to a predetermined lateral wall of the cabinet. The sensor is made up of first and second magnetic sensing elements situated to have a predetermined spacing between one another substantially along the travel axis. The first and second magnetic sensing elements are electromagnetically coupled to the magnetic source for supplying, respectively, first and second output signals as the washer basket rotates relative to the magnetic sensor. The system further includes a signal processor coupled to the magnetic sensor for receiving the first and second output signals supplied by the sensor. The signal processor is programmed for measuring load in the washer basket based on the first and second output signals received from the magnetic sensor.