Australian Mortgage Calculator — Monthly Repayments & Total Interest 2026
Real-World Examples — 2026
Sydney buyer — $750,000 property, 20% deposit
A buyer purchasing a $750,000 property in Sydney with a 20% deposit ($150,000) takes a $600,000 home loan at 6.3% over 30 years. Monthly P&I repayments are approximately $3,718. Total repayments over 30 years are approximately $1,338,520, meaning total interest paid is approximately $738,520.
Melbourne investor — $500,000 loan, interest-only for 5 years
An investor borrowing $500,000 at 6.5% interest-only for the first 5 years pays approximately $2,708 per month during the IO period. After 5 years reverting to P&I over the remaining 25 years, repayments jump to approximately $3,372 per month. The IO period adds roughly $80,000 in extra interest over the loan life.
Frequently Asked Questions
What is the average home loan interest rate in Australia in 2026?
As of May 2026, the average variable home loan rate in Australia is approximately 6.3% per annum. The RBA cash rate target is 4.10%. Fixed rates for 2-year terms are generally available between 5.8% and 6.5% depending on the lender and LVR.
How much can I borrow for a home loan in Australia?
Australian lenders typically allow borrowing up to 4–6 times your gross annual income, subject to Responsible Lending obligations (now under APRA/ASIC guidelines). Most lenders will also require genuine savings of at least 5% of the purchase price, plus enough to cover stamp duty and costs.
What is the difference between principal and interest vs interest-only repayments?
Principal and interest (P&I) repayments pay down both the loan balance and the interest each month, so you build equity and the loan is repaid by end of term. Interest-only (IO) repayments cover only the interest charge, leaving the principal unchanged. IO periods are typically 1–5 years and result in higher total interest paid over the life of the loan.
What is LVR and why does it matter?
LVR (Loan-to-Value Ratio) is your loan amount divided by the property value, expressed as a percentage. An 80% LVR means you are borrowing 80% of the property value. Lenders charge Lenders Mortgage Insurance (LMI) when LVR exceeds 80%. Borrowing below 80% LVR avoids LMI, which can save tens of thousands of dollars.
Is it better to pay fortnightly instead of monthly?
Yes, paying fortnightly (26 payments per year instead of 12 monthly payments) effectively results in one extra monthly payment per year. On a $600,000 loan at 6.3% over 30 years, switching to fortnightly repayments can save over $70,000 in interest and cut the loan term by approximately 4–5 years.