Average Mortgage Repayment in Australia (2026)
The average Australian mortgage repayment in 2026 is approximately $3,400–$3,800 per month, based on the national median outstanding loan balance of roughly $590,000–$630,000 at current variable interest rates of around 5.75–6.25% p.a.
This varies significantly by city. Sydney borrowers with a median loan balance around $750,000 face average repayments approaching $4,500/month, while borrowers in Adelaide or Perth with loan balances closer to $500,000 pay around $3,000/month.
National Average Mortgage Repayment at a Glance (April 2026)
| Metric | Approximate Figure |
|---|---|
| Average outstanding loan balance (Australia) | ~$610,000 |
| Average variable rate (owner-occupier P&I) | ~5.90–6.20% p.a. |
| Average monthly repayment (30yr P&I) | ~$3,500–$3,800 |
| Average fortnightly repayment | ~$1,615–$1,754 |
| Average household mortgage repayment as % of income | ~25–30% of gross income |
Sources: ABS Housing Finance, APRA Monthly Banking Statistics, RBA data. Figures are estimates based on data available at April 2026.
Average Mortgage Repayment by City (2026)
Repayment estimates below are based on city median dwelling prices (combined houses and apartments), a 20% deposit and a 6.00% variable rate over 30 years.
| City | Estimated Median Loan | Monthly Repayment | Fortnightly |
|---|---|---|---|
| Sydney | ~$750,000 | ~$4,497 | ~$2,076 |
| Melbourne | ~$650,000 | ~$3,897 | ~$1,799 |
| Brisbane | ~$620,000 | ~$3,717 | ~$1,715 |
| Perth | ~$540,000 | ~$3,238 | ~$1,495 |
| Adelaide | ~$500,000 | ~$2,998 | ~$1,384 |
| Hobart | ~$430,000 | ~$2,578 | ~$1,191 |
| Canberra | ~$560,000 | ~$3,358 | ~$1,550 |
| Darwin | ~$380,000 | ~$2,278 | ~$1,051 |
Estimates based on ABS/CoreLogic median prices at April 2026, 20% deposit assumed. Actual repayments vary by lender and borrower circumstances.
How the Average Has Changed Over Time
Australian mortgage repayments increased significantly between 2022 and 2023 as the RBA raised the cash rate from 0.10% to 4.35% — the fastest tightening cycle in decades. From early 2025, the RBA began cutting rates, with the cash rate at approximately 3.85% in April 2026.
| Period | Cash Rate | Average Variable Rate | Avg Monthly Repayment ($600k loan) |
|---|---|---|---|
| May 2022 (pre-hikes) | 0.10% | ~2.50% | ~$2,367 |
| November 2023 (peak) | 4.35% | ~6.50% | ~$3,794 |
| April 2026 (current) | ~3.85% | ~5.90–6.20% | ~$3,538–$3,718 |
For a borrower with a $600,000 mortgage, the rate cycle between 2022 and 2023 added approximately $1,400/month to repayments. The partial rate cuts since late 2024 have partially unwound this, but repayments remain substantially higher than their 2022 lows.
What Percentage of Income Goes to Mortgage Repayments?
The mortgage stress threshold is commonly cited as 30% of gross household income. The Reserve Bank of Australia monitors mortgage serviceability closely, particularly the share of borrowers spending more than 30% of income on repayments.
| Gross Household Income | Monthly Repayment Budget (30%) | Maximum Comfortable Loan (6%, 30yr) |
|---|---|---|
| $80,000 | $2,000/month | ~$333,000 |
| $100,000 | $2,500/month | ~$417,000 |
| $120,000 | $3,000/month | ~$500,000 |
| $150,000 | $3,750/month | ~$625,000 |
| $200,000 | $5,000/month | ~$834,000 |
Based on median household income of approximately $110,000–$120,000 for Australian couple households (ABS 2025), the “affordable” loan at 30% of income is roughly $460,000–$500,000. This is well below the current median purchase price in most capital cities — highlighting the affordability challenge for many Australian households.
Mortgage Repayments vs Rent — National Comparison
Across Australia in 2026, mortgage repayments on a median-priced dwelling generally exceed renting the equivalent property. This has widened the rent-vs-buy gap significantly since 2022.
| City | Estimated Monthly Mortgage Repayment | Typical Monthly Rent | Difference |
|---|---|---|---|
| Sydney | ~$4,497 | ~$3,200–$3,800 | Mortgage $700–$1,300 more |
| Melbourne | ~$3,897 | ~$2,400–$3,000 | Mortgage $900–$1,500 more |
| Brisbane | ~$3,717 | ~$2,800–$3,400 | Mortgage $300–$900 more |
| Perth | ~$3,238 | ~$2,600–$3,200 | Roughly similar or mortgage slightly more |
| Adelaide | ~$2,998 | ~$2,000–$2,600 | Mortgage $400–$1,000 more |
Rent figures based on SQM Research and Domain rent data at April 2026. Mortgage estimates assume 20% deposit on median property price.
Despite the short-term cost advantage of renting in many markets, buyers build equity over time while renters do not. The rent-vs-buy decision involves many factors beyond monthly cost. See city-specific guides: rent vs buy in Sydney, Melbourne, Brisbane and Perth.
Who Has a Mortgage in Australia?
According to ABS data, approximately 35% of Australian households have a mortgage. Of these:
- The median outstanding mortgage balance is approximately $400,000–$500,000 (ABS 2024 survey data)
- Around 25–30% of mortgaged households report mortgage stress (repayments above 30% of gross income)
- Approximately 70% of owner-occupier mortgages are on variable interest rates (APRA data)
- The median mortgage term at origination is 30 years, but the effective term (accounting for refinancing, extra repayments and property sales) is typically 7–10 years
Strategies to Reduce Your Mortgage Repayment Burden
1. Negotiate your rate Most lenders have a headline rate and a lower rate available to customers who ask. On a $600,000 loan, a 0.25% rate reduction saves approximately $90/month and $32,000 over 30 years.
2. Switch to fortnightly repayments Paying half the monthly repayment every two weeks results in 26 half-payments (equivalent to 13 monthly payments) per year, reducing the loan term and total interest.
3. Maintain an offset account A $50,000 offset account on a $600,000 loan at 6.00% saves approximately $3,000/year in interest — equivalent to a 6.00% guaranteed return on the balance.
4. Make extra repayments during rate cuts When rates fall, consider maintaining your current repayment level rather than letting repayments reduce. The difference goes directly to principal.
5. Refinance when savings justify costs Refinancing typically costs $1,000–$2,000 in fees. If a new rate saves $100+/month, refinancing usually pays for itself within 12–24 months.
Frequently Asked Questions
What is the average mortgage repayment in Australia in 2026? Based on current median loan balances and interest rates, the average monthly mortgage repayment in Australia is approximately $3,500–$3,800. This is significantly higher than pre-2022 levels due to the RBA rate cycle, though partial rate cuts since late 2024 have provided some relief.
What is the average home loan size in Australia? The average new loan commitment in Australia as of early 2026 is approximately $620,000–$650,000 (ABS Housing Finance data). In Sydney, the average is considerably higher — around $750,000–$800,000.
How much of income should go to mortgage repayments? The commonly cited benchmark is 30% of gross income. Repayments above 30% are generally considered financially stressful. As a practical guide, lenders also use this threshold as part of their affordability assessment (alongside the APRA 3% buffer).
Has the average mortgage repayment gone down in 2025–26? Yes, partially. The RBA cut the cash rate four times between early 2025 and April 2026, reducing it from 4.35% to approximately 3.85%. For a borrower on a $600,000 variable-rate loan, this translates to approximately $150–$200/month in savings compared to the November 2023 peak. However, repayments remain much higher than pre-2022 levels.
Related Guides
- $500,000 Mortgage Repayments
- $600,000 Mortgage Repayments
- True Cost of Homeownership in Australia
- Mortgage Repayment Amounts — All Loan Sizes
This article provides general information only and is based on data available at April 2026. Mortgage rates and property prices change regularly. For advice tailored to your situation, speak with a licensed mortgage broker or financial adviser. Find one through MoneySmart.