Calculate monthly repayments, total interest and compare loan terms for Australian home loans in AUD.
On a typical A$600,000 home loan at 6.2% interest over 30 years, your monthly repayment is approximately A$3,678. You'll pay about A$724,030 in total interest over the life of the loan. A 25-year term saves you roughly A$153,000 in interest but increases your monthly payment by about A$430.
The table below shows estimated monthly repayments at 6.2% interest (principal and interest) across common Australian loan amounts and terms.
| Loan Amount | 30 Years | 25 Years | 20 Years | Total Interest (30yr) |
|---|---|---|---|---|
| A$400,000 | A$2,452 | A$2,739 | A$3,158 | A$482,687 |
| A$500,000 | A$3,065 | A$3,424 | A$3,948 | A$603,359 |
| A$600,000 | A$3,678 | A$4,109 | A$4,737 | A$724,030 |
| A$700,000 | A$4,291 | A$4,793 | A$5,527 | A$844,702 |
| A$800,000 | A$4,904 | A$5,478 | A$6,316 | A$965,374 |
| A$1,000,000 | A$6,130 | A$6,848 | A$7,896 | A$1,206,718 |
Based on 6.2% annual interest rate, principal and interest repayments. Actual rates vary by lender.
| Interest Rate | Monthly Payment | Total Interest | Total Repaid |
|---|---|---|---|
| 5.0% | A$3,221 | A$559,449 | A$1,159,449 |
| 5.5% | A$3,407 | A$626,350 | A$1,226,350 |
| 6.0% | A$3,597 | A$695,040 | A$1,295,040 |
| 6.2% | A$3,678 | A$724,030 | A$1,324,030 |
| 6.5% | A$3,792 | A$765,236 | A$1,365,236 |
| 7.0% | A$3,991 | A$836,855 | A$1,436,855 |
Comparison shows how even a small rate difference significantly affects total cost over 30 years.
Australian home loans (mortgages) are offered by banks, credit unions and non-bank lenders. Most loans are variable rate, meaning the interest rate can change when the Reserve Bank of Australia (RBA) adjusts the official cash rate. Fixed-rate loans lock in a rate for 1–5 years, providing repayment certainty. Many borrowers opt for a split loan — part fixed, part variable — to balance stability and flexibility.
In Australia, the standard loan term is 30 years, though 25-year and 20-year terms are also common. Shorter terms mean higher monthly repayments but significantly less total interest paid. For example, choosing a 25-year term over 30 years on a A$600,000 loan at 6.2% saves approximately A$153,000 in interest.
Key features to compare when choosing a home loan include: the comparison rate (which includes fees), offset account availability, redraw facility, extra repayment options, and whether there are break costs for early repayment on fixed loans.
If you buy a A$750,000 property with a 20% deposit (A$150,000), your loan amount is A$600,000. At 6.2% over 30 years, your monthly repayment is approximately A$3,678. You'll pay roughly A$724,030 in total interest. Adding A$200/month in extra repayments could save you over A$80,000 in interest and cut 5+ years off the loan term.
As of July 2026, average variable home loan rates in Australia range from approximately 6.0% to 6.5% for owner-occupiers with principal and interest repayments. Fixed rates for 1–3 year terms range from approximately 5.5% to 6.3%, depending on the lender and loan-to-value ratio (LVR).
Most Australian lenders require a minimum 5–10% deposit, but a 20% deposit is recommended to avoid paying Lenders Mortgage Insurance (LMI). For a A$750,000 home, a 20% deposit would be A$150,000. First Home Guarantee schemes may allow 5% deposits without LMI for eligible buyers.
On a A$600,000 home loan at 6.2% interest over 30 years, the monthly repayment is approximately A$3,678. Over the life of the loan, you would pay approximately A$724,030 in total interest. Choosing a 25-year term increases the payment to ~A$4,109 but saves ~A$153,000 in interest.
LMI is a one-off insurance premium charged when your deposit is less than 20% of the property value. It protects the lender (not you) if you default. LMI can cost from A$5,000 to A$40,000+ depending on the loan amount and deposit size. It can be paid upfront or capitalised into the loan.
Variable rates offer flexibility — you can make extra repayments and access offset accounts. Fixed rates provide certainty for 1–5 years. Many borrowers choose a split loan (part fixed, part variable). As of July 2026, fixed rates are slightly lower than variable rates for most terms, but this can change.
Australian lenders typically allow borrowing up to 6 times your gross annual income, subject to living expenses, existing debts, and deposit size. For a household income of A$120,000, you could potentially borrow A$600,000–A$720,000 depending on your financial situation and the lender's serviceability assessment.
Beyond the deposit, expect to pay stamp duty (varies by state — use our Stamp Duty Calculator), legal/conveyancing fees (A$1,500–A$3,000), building and pest inspections (A$500–A$1,000), loan application fees (A$0–A$600), and potentially LMI if your deposit is under 20%.
Money in your offset account reduces the loan balance you pay interest on. A$50,000 in offset on a A$600,000 loan saves over A$100,000 in interest over 30 years.
If your deposit is less than 20%, you'll likely need LMI which can add thousands to your loan cost. Consider saving to 20% or using the First Home Guarantee scheme.
The comparison rate includes most fees and charges, giving a more accurate picture of the true cost than the advertised rate alone. Always compare comparison rates between lenders.
Variable rates can change monthly but offer flexibility for extra repayments. Fixed rates give certainty for 1–5 years. A split loan gives you the best of both worlds.
Even A$200/month extra on a A$600,000 loan at 6.2% over 30 years can save you ~A$80,000 in interest and cut 5+ years off the loan. Make extra repayments whenever possible.
First home buyers may be eligible for the First Home Owner Grant (FHOG) and the First Home Guarantee (allowing 5% deposit without LMI). Eligibility varies by state — check your state revenue office.