Here’s how much you’ll need to afford a $750,000 home loan in Australia

Young happy couple carrying their stuff in yellow studio isolated background. The man holds up a cardboard cut-out of a house

Are you in the market for a property and have questions about how much money you’ll need for a $750,000 home loan

A home worth $750,000 might sound like a lot, but it’s actually close to the average mortgage size in the state of New South Wales. So, let’s break down things like how big a deposit you need for a $750,000 home and what your income needs to be to cover monthly repayments.

How much do you need to buy a $750,000 home? 

The first step in purchasing a home is to save up a deposit. A home loan deposit is usually 20% of the purchase price of the property, but there are cases where you can contribute as little as 5-10%. 

Aside from your initial deposit, you’ll also likely need to cover a few upfront provider fees and government charges, such as: 

  • Loan application fees
  • Settlement fees 
  • Conveyancing fees 
  • Property valuation fees
  • Stamp duty (unless you have an exemption).  

You can expect to pay into the hundreds for these fees, but may be entitled to a stamp duty waiver if you’re eligible for your state or territory’s First Home Owners Grant (FHOG). 

Aside from your deposit and the various fees associated with buying a property, a home loan lender will also take your borrowing power into account. Lenders can have different points of view when it comes to calculating your borrowing power, so make sure to shop around and compare home loans if at first you don’t succeed. 

What’s the deposit size for a $750,000 home loan?

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As purchasing a home in Australia usually requires a 20% deposit, a $750,000 home deposit will work out to be $150,000. 

A 20% deposit will put you in the 80% loan-to-value ratio (LVR) bracket, where many of the competitive home loan interest rates are found. 

If you don’t have a 20% deposit handy, but have enough for a 10% (or even 5%) one, you also have the option to look into low deposit home loans. A 10% deposit will require you to save $75,000, but a 5% deposit comes all the way down to $37,500. 

The catch is you’ll probably need to take out Lenders Mortgage Insurance (LMI), which may end up costing you more, as well as expose you to higher interest rates due to your higher LVR. 

If you haven’t quite got a 20% deposit, there are still some ways to avoid paying for LMI and qualifying for higher rates. These include: 

  • Seeking out a guarantor 
  • Using a cash gift as part of your deposit
  • Applying for a first home owners grant. 

How long does it take to save a 20% deposit for a $750,000 home?  

  • If you save $1,250 per month, you’ll have your $150,000 deposit in 10 years.
  • If you save $2,500 per month, you’ll have your $150,000 deposit in 5 years.
  • If you save $5,000 per month, you’ll have your $150,000 deposit in 2.5 years.
  • If you manage to save $12,500 per month, you’ll have your $150,000 deposit in as little as 1 year. 

Saving for a home loan deposit takes time, but helps to have a goal in mind – especially when it comes to creating a budget. Check out Mozo’s budget calculator to see how much you can save each month.

How much income do you need to buy a $750,000 home? 

A young happy couple in front of a yellow studio background. The man holds a box of clothes and the woman holds up a cardboard cut-out of a house

The best way to work out if you can afford a $750,000 home is to calculate your monthly repayments to see if your income matches up. 

If you purchase a $750,000 home with a 20% deposit, you’ll be up for a $600,000 loan. Now, say you’re an owner-occupier, paying principal and interest, with a loan term of 25 years at the average interest rate in the Mozo database of 6.60% p.a.

Using Mozo’s mortgage repayment calculator, you’d be up for a monthly instalment of $4,089. But taking into account ‘mortgage-stress’ (i.e. spending more than 30% of your monthly income on repayments), you’d need to be earning at least $13,630 after tax each month to comfortably meet your financial obligations. 

Calculated as a yearly salary, those looking to purchase a $750,000 house, your household would need to bring home an after-tax income of $163,560 per year. 

If you’re ready to buy, check out Mozo’s handy borrowing power calculator to see how big a loan you can afford. If you’re ready to compare home loans, have a look at some of the featured products below. 

Home loan comparisons on Mozo - last updated 29 May 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

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    Initial monthly repayment
    6.25% p.a.
    fixed 3 years
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    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

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    Owner Occupier, LVR<70%

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    Initial monthly repayment
    5.99% p.a. variable
    6.01% p.a.

    A low rate home loan for owner-occupiers packed with great features including unlimited extra repayments, free online redraw, no application or monthly admin fees. Rate will vary depending on LVR. Winner of a Mozo Experts Choice 2024 Low Cost Home Loan Award^

  • Discounted Home Value Loan

    Owner Occupier, Principal & Interest, LVR 70-80%

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    Initial monthly repayment
    6.09% p.a. variable
    6.09% p.a.

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).