$1,000,000 Mortgage Repayments Australia (2026)
At a 6.00% p.a. interest rate over 30 years, monthly repayments on a $1,000,000 mortgage are $5,996. Fortnightly repayments are $2,767 and weekly repayments are $1,384. Over the full 30-year term, total interest paid would be approximately $1,158,560 — more than the original loan amount.
A $1,000,000 mortgage is increasingly common in Sydney and is not unusual for buyers in inner Melbourne, coastal areas and high-growth urban fringe markets.
$1,000,000 Mortgage — Monthly Repayments by Interest Rate (30-Year Term)
| Interest Rate | Monthly | Fortnightly | Weekly | Total Interest Paid |
|---|---|---|---|---|
| 5.50% p.a. | $5,679 | $2,621 | $1,311 | $1,044,440 |
| 5.75% p.a. | $5,836 | $2,694 | $1,347 | $1,100,960 |
| 6.00% p.a. | $5,996 | $2,767 | $1,384 | $1,158,560 |
| 6.25% p.a. | $6,157 | $2,841 | $1,421 | $1,216,520 |
| 6.50% p.a. | $6,323 | $2,918 | $1,459 | $1,276,280 |
| 7.00% p.a. | $6,653 | $3,070 | $1,535 | $1,395,080 |
| 7.50% p.a. | $6,991 | $3,227 | $1,614 | $1,516,760 |
Principal and interest repayments. Figures rounded to the nearest dollar.
The difference between a 5.50% and 7.50% rate on a $1,000,000 loan is $1,312/month in repayments — and over $472,000 in total interest over 30 years.
Repayments by Loan Term at 6.00% p.a.
| Loan Term | Monthly Repayment | Total Repaid | Total Interest Paid |
|---|---|---|---|
| 30 years | $5,996 | $2,158,560 | $1,158,560 |
| 25 years | $6,443 | $1,932,900 | $932,900 |
| 20 years | $7,164 | $1,719,360 | $719,360 |
| 15 years | $8,439 | $1,519,020 | $519,020 |
Choosing a 20-year term over 30 years saves approximately $439,200 in interest on a $1,000,000 loan — at a cost of $1,168/month more in repayments.
What Income Do You Need for a $1,000,000 Mortgage?
| Borrower Type | Approximate Income Needed |
|---|---|
| Single borrower, no HECS, no dependants | ~$180,000–$220,000 |
| Single borrower with HECS debt | ~$205,000–$250,000 |
| Joint borrowers (combined income) | ~$155,000–$195,000 combined |
A $1,000,000 mortgage on a single income requires high earnings — generally in the top 10–15% of Australian income earners. Dual-income couples on a combined income of $170,000–$200,000 are better positioned. See how much you can borrow on a $200,000 salary and joint borrowers on $200,000 combined.
Top-rate tax consideration: Borrowers on $180,000+ income are subject to the 45% marginal tax rate on income above $190,001 (FY2025–26). Interest deductibility applies only on investment loans, not owner-occupier mortgages.
What Does a $1,000,000 Loan Buy?
| Deposit | Property Price | LVR | LMI Required? |
|---|---|---|---|
| $52,632 (5%) | $1,052,632 | 95% | Yes |
| $111,111 (10%) | $1,111,111 | 90% | Yes |
| $250,000 (20%) | $1,250,000 | 80% | No |
| $333,333 (25%) | $1,333,333 | 75% | No |
At $1,250,000 with a 20% deposit, this loan covers:
- A typical house in Sydney’s middle ring or northern beaches
- An upper-quartile house in Melbourne’s inner east or south-east
- A prestige home in Brisbane, Perth or Adelaide
- A top-tier coastal or regional lifestyle property
At this price point, stamp duty is substantial in all states — typically $40,000–$70,000 depending on the state. No first home buyer exemptions apply at $1,250,000. See the stamp duty calculator for state-by-state figures.
Extra Repayments — Impact on a $1,000,000 Loan
| Extra Monthly Repayment | Years Saved | Interest Saved |
|---|---|---|
| $500/month | ~5 years | ~$196,000 |
| $1,000/month | ~9.5 years | ~$345,000 |
| $2,000/month | ~16 years | ~$555,000 |
| $3,000/month | ~21 years | ~$705,000 |
At $1,000,000, an extra $1,000/month saves approximately $345,000 in interest and cuts nearly 10 years from the loan term. Given the scale of interest costs at this loan size, a disciplined extra repayment strategy can make a significant financial difference over the life of the loan.
Offset Account Strategy at $1,000,000
An offset account is particularly powerful on a large loan:
| Average Offset Balance | Annual Interest Saving (at 6.00%) |
|---|---|
| $50,000 | ~$3,000 |
| $100,000 | ~$6,000 |
| $200,000 | ~$12,000 |
| $300,000 | ~$18,000 |
Maintaining $200,000 in an offset account on a $1,000,000 loan at 6.00% saves $12,000 per year in interest charges. Unlike paying down the loan, these funds remain accessible for emergencies or investment opportunities. See the offset account calculator for detailed modelling.
Interest-Only vs Principal and Interest
Some borrowers — particularly property investors — choose an interest-only period (typically 1–5 years) on large loans. This reduces initial repayments but does not reduce the principal balance.
| Repayment Type | Monthly Repayment at 6.00% | After 5 Years: Outstanding Balance |
|---|---|---|
| Interest-only (first 5 years) | $5,000 | $1,000,000 (unchanged) |
| Principal and interest (30yr) | $5,996 | ~$930,000 |
After an interest-only period ends, repayments typically rise sharply as the remaining principal must be repaid over the remaining term. Interest-only loans are generally not recommended for owner-occupiers. APRA imposes additional restrictions on interest-only lending.
Frequently Asked Questions
What are the monthly repayments on a $1,000,000 mortgage in Australia? At 6.00% p.a. over 30 years, monthly repayments on a $1,000,000 P&I loan are $5,996. At 5.50%, repayments fall to $5,679/month. At 7.00%, they rise to $6,653/month.
How much interest do you pay on a $1 million home loan? At 6.00% over 30 years, total interest is approximately $1,158,560 — exceeding the original loan amount. Over 25 years at the same rate, total interest falls to around $932,900.
What salary do you need for a $1,000,000 mortgage? A single borrower typically needs $180,000–$220,000 gross annual income to qualify for a $1,000,000 mortgage in Australia. For couples, a combined income of $155,000–$195,000 is generally required, subject to expenses and debts.
Can I get a $1 million mortgage in Australia? Yes. $1,000,000 mortgages are approved regularly by Australian banks and non-bank lenders. The key requirements are sufficient income to pass APRA’s 3% serviceability buffer test, a clean credit history, a minimum 5–20% deposit and acceptable living expense levels under the lender’s HEM assessment.
Related Guides
- $900,000 Mortgage Repayments
- $1,500,000 Mortgage Repayments
- How Much Can I Borrow on a $200,000 Salary?
- Mortgage Repayment Amounts — All Loan Sizes
This article provides general information only. Repayment figures are estimates based on a standard P&I amortisation formula. Actual repayments depend on your lender’s terms, rate and fees. For advice tailored to your situation, speak with a licensed mortgage broker or financial adviser. Find one through MoneySmart.