To buy a $1,000,000 property in Australia with a 20% deposit and a 30-year loan at 6%, you need a gross income of approximately $150,000–$175,000 to comfortably service the $800,000 mortgage. Couples typically need a combined income of $200,000–$230,000.
The Numbers at a Glance — $1,000,000 Property
| Item | Amount |
|---|---|
| Purchase price | $1,000,000 |
| 20% deposit | $200,000 |
| Loan amount (80% LVR) | $800,000 |
| Stamp duty (NSW, owner-occupier) | ~$40,335 |
| Other buying costs | ~$5,000–$7,000 |
| Total funds needed (20% deposit) | ~$248,000–$252,000 |
| Monthly repayment at 6%, 30yr | $4,796 |
| Monthly repayment at 6%, 25yr | $5,145 |
Income Required
| Deposit | Loan amount | LMI | Monthly repayment | Income needed |
|---|---|---|---|---|
| 10% ($100,000) | $900,000 | ~$18,000–$22,000 | $5,395 | ~$165,000–$195,000 |
| 20% ($200,000) | $800,000 | Nil | $4,796 | ~$150,000–$175,000 |
Note: The First Home Guarantee is generally not available at $1,000,000 — property price caps in most states are below this threshold (NSW cap is $900,000 in FY2025–26).
Stamp Duty at $1,000,000 (by State)
| State | Non-FHB stamp duty | FHB stamp duty |
|---|---|---|
| NSW | ~$40,335 | Concessional — $1,000,000 is above the exemption at $800,000 and the concessional zone ($800,001–$1,000,000 at reduced rate) ends here |
| VIC | ~$55,000 | Concession phased out above $600,000 |
| QLD | ~$30,000 | Concession limited above $500,000 |
| WA | ~$40,000 | Concession largely phased out |
| SA | ~$48,000 | Full duty |
Use our stamp duty calculator for a precise figure in your state.
Monthly Repayment by Rate ($800,000 loan, 30yr)
| Rate | Monthly | Annual |
|---|---|---|
| 5.50% | $4,542 | $54,504 |
| 6.00% | $4,796 | $57,552 |
| 6.50% | $5,058 | $60,696 |
| 7.00% | $5,322 | $63,864 |
Repayment as % of Income
| Gross income | Monthly (6%, $800k) | % of gross |
|---|---|---|
| $130,000 | $4,796 | 44% |
| $150,000 | $4,796 | 38% |
| $175,000 | $4,796 | 33% |
| $200,000 | $4,796 | 29% |
At $150,000, the repayment represents 38% of gross income — at the upper end of comfortable but passable for lenders with no other major debts. At $175,000, it falls into a more sustainable 33%.
Total Buying Costs (NSW)
| Cost | Amount |
|---|---|
| 20% deposit | $200,000 |
| Stamp duty | ~$40,335 |
| Legal/conveyancing | $2,500–$4,000 |
| Building & pest inspection | $700–$1,200 |
| Loan establishment | $400–$800 |
| Moving | $2,000–$5,000 |
| Total | ~$248,000–$254,000 |
Saving $250,000+ for a property purchase is a significant undertaking. Most buyers at this price point are either:
- Established professionals with 5–8+ years of savings
- Leveraging equity from a previous property
- Purchasing jointly with a partner
What $1,000,000 Buys in Australia
$1,000,000 is above the median for most capital cities (except Sydney) and buys well in most markets.
| City | What $1,000,000 buys |
|---|---|
| Sydney | Apartment inner city or lower north shore; house in outer/middle suburbs (30–45km from CBD) |
| Melbourne | House in good middle-ring suburbs; quality home in inner suburbs |
| Brisbane | Premium house in desirable inner-ring suburbs |
| Perth | High-end home in prestigious suburbs |
| Adelaide | Outstanding purchasing power; prestige properties accessible |
In Melbourne, $1,000,000 is just above the median house price (~$940,000) — meaning you’re in the mid-to-upper market of one of Australia’s major cities.
Strategies for Buyers at This Price Point
Use an offset account from day one. On an $800,000 loan, every dollar in offset saves you interest at your mortgage rate. With an average $50,000 offset balance, annual interest savings are approximately $2,800 at 5.6%.
Consider a loan split. Fixing a portion of your $800,000 loan provides rate certainty on that portion. Variable on the remainder allows offset and extra repayments. Many borrowers at this level split 50/50 or 60/40.
Review every 2–3 years. The difference between a competitive and a non-competitive rate on $800,000 is significant. A 0.50% saving equates to approximately $4,000/year — worth refinancing for.
See our refinancing calculator to model the benefit.
FAQ
What income do you need for a $1 million home loan?
An $800,000 loan (standard with 20% deposit on a $1 million property) requires approximately $150,000–$175,000 single income, or $200,000–$230,000 combined income, for comfortable serviceability. The absolute minimum is approximately $130,000 with very low expenses and debts.
Is buying a $1 million house a good investment?
A $1 million property in a strong Australian market has historically delivered long-term capital growth. However, past performance is not a reliable indicator of future returns, and property markets can and do experience periods of decline. Buying a property that stretches your finances to the limit also creates risk if rates rise or income falls. Always model worst-case scenarios.
For advice tailored to your situation, speak with a licensed mortgage broker or financial adviser. Find one through MoneySmart.