To buy a $1,500,000 property in Australia with a 20% deposit and a 30-year loan at 6%, you need a gross income of approximately $220,000–$260,000 to comfortably service the $1,200,000 mortgage. For couples, a combined income of $280,000–$330,000 is a practical benchmark.
The Numbers at a Glance — $1,500,000 Property
| Item | Amount |
|---|---|
| Purchase price | $1,500,000 |
| 20% deposit | $300,000 |
| Loan amount (80% LVR) | $1,200,000 |
| Stamp duty (NSW, owner-occupier) | ~$66,485 |
| Other buying costs | ~$6,000–$10,000 |
| Total funds needed (20% deposit) | ~$375,000–$383,000 |
| Monthly repayment at 6%, 30yr | $7,194 |
| Monthly repayment at 6%, 25yr | $7,718 |
Income Required
| Deposit | Loan amount | LMI | Monthly repayment | Income needed |
|---|---|---|---|---|
| 10% ($150,000) | $1,350,000 | ~$28,000–$36,000 | $8,093 | ~$245,000–$290,000 |
| 20% ($300,000) | $1,200,000 | Nil | $7,194 | ~$220,000–$260,000 |
No government assistance at this price point. The First Home Guarantee, FHOG, and FHB stamp duty exemptions all phase out well below $1,500,000.
Stamp Duty at $1,500,000 (by State)
| State | Stamp duty (approx.) |
|---|---|
| NSW | ~$66,485 |
| VIC | ~$85,070 |
| QLD | ~$64,025 |
| WA | ~$63,490 |
| SA | ~$73,830 |
Stamp duty at this price point is a substantial cost — $64,000–$85,000 depending on state. NSW has the most significant land tax regime as well, which applies to investment properties above the threshold (around $1,075,000 in 2026).
Use our stamp duty calculator for your specific state.
Monthly Repayment by Rate ($1,200,000 loan, 30yr)
| Rate | Monthly | Annual |
|---|---|---|
| 5.50% | $6,813 | $81,756 |
| 6.00% | $7,194 | $86,328 |
| 6.50% | $7,585 | $91,020 |
| 7.00% | $7,985 | $95,820 |
A 1% rate move on $1,200,000 equates to approximately $12,000/year in additional interest — a significant number. Rate risk management (through fixed or split loans) becomes more important at higher loan sizes.
Repayment as % of Income
| Gross income | Monthly (6%, $1.2M) | % of gross income |
|---|---|---|
| $180,000 | $7,194 | 48% |
| $200,000 | $7,194 | 43% |
| $220,000 | $7,194 | 39% |
| $250,000 | $7,194 | 35% |
| $280,000 | $7,194 | 31% |
At $220,000–$250,000, the repayment burden falls into the 35–39% of gross range. Below $200,000 single income, a $1,200,000 loan is extremely stretched — most lenders will not approve without exceptional circumstances (very low declared expenses, large existing assets).
Who Buys at $1,500,000?
At this price point, buyers are typically:
- Established professionals in high-income occupations (law, medicine, finance, engineering, senior management)
- Joint income couples where combined income exceeds $250,000–$300,000
- Upgraders selling an existing property and carrying forward significant equity
- Investors with equity leveraging an existing portfolio
Total Buying Costs (NSW)
| Cost | Amount |
|---|---|
| 20% deposit | $300,000 |
| Stamp duty | ~$66,485 |
| Legal/conveyancing | $3,000–$5,000 |
| Building & pest inspection | $800–$1,500 |
| Loan establishment | $500–$1,000 |
| Moving | $3,000–$7,000 |
| Total | ~$375,000–$385,000 |
What $1,500,000 Buys in Australia
| City | What $1,500,000 buys |
|---|---|
| Sydney | Established house in inner-ring suburbs (10–15km from CBD) or premium house in middle suburbs; entry-level to mid-tier properties in prestige areas |
| Melbourne | Quality house in prestigious inner suburbs; premium family home in middle suburbs |
| Brisbane | Prestige property across most of the city |
| Perth | Premium home in highly sought-after coastal or riverside suburbs |
| Adelaide | Exceptional properties; prestige market widely accessible |
$1,500,000 is close to Sydney’s median house price — meaning this is the level at which Sydney’s median house becomes attainable.
High-Income Strategies at $1.5M+
Offset account maximisation. On $1,200,000, an offset balance of $100,000 saves approximately $5,600/year in interest — worth prioritising.
Split loan strategy. Many borrowers at this level fix 50–60% for rate certainty and maintain offset capability on the variable portion.
Depreciation on new builds. If purchasing a new property at $1,500,000, capital works deductions (Div 43) and plant & equipment deductions (Div 40) may apply for investment properties.
Professional package discounts. Some lenders offer professional rate discounts (often 0.1–0.3%) for borrowers in certain professions (doctors, lawyers, accountants) or at certain income/loan thresholds. A broker can identify these.
FAQ
Can a couple on $250,000 combined buy a $1.5 million house?
With a combined income of $250,000, estimated joint borrowing power is approximately $1,250,000–$1,450,000. To buy at $1,500,000 with a 20% deposit, you’d need to save $300,000 plus $80,000+ in stamp duty and buying costs — a total of approximately $380,000. This is achievable for an established couple with 5–8 years of strong savings, particularly if they previously owned property and are leveraging equity.
Is $1,500,000 a good Sydney property buy?
$1,500,000 is near Sydney’s median house price in 2026. Buying near the median is generally considered a sound strategy because it reflects demand from the broadest section of the buyer market. However, no property purchase is guaranteed to appreciate, and all investments carry risk.
For advice tailored to your situation, speak with a licensed mortgage broker or financial adviser. Find one through MoneySmart.