Home loan monthly payments could now cost over $7,600 for the median Aussie house

By Evlin DuBose · Wednesday, 24 January 2024 · 2 min read

Fact Checked

Woman worried about looming Sydney house prices hitting a record high

The Australian property market has fully recovered from the 2022 downturn, reports Domain.

Reserve Bank interest rate hikes drove price falls in 2022 because home loan affordability became suddenly stretched. But over 2023, the steep cost to entry didn’t prove much of an obstacle for home buyers.

In Sydney, house prices have hit a new record high, regaining their -9.3% losses in 2022. Adelaide and Perth have hit their previous peaks once more, while Brisbane has smashed its own housing records and unit gains with a 16-year high.

Only Canberra has lagged behind: the Australian capital saw house prices hit a new trough in 2023, sitting at -12.9% below their previous 2022 peak.

Median property prices (December quarter 2023, source: Domain)

City	House	Unit
Sydney	$1,595,310	$795,994
Melbourne	$1,047,273	$579,506
Brisbane	$888,285	$524,202
Adelaide	$875,034	$484,407
Canberra	$1,024,214	$625,597
Perth	$742,390	$387,218
Hobart	$706,728	$535,426
Darwin	$640,806	$371,096
Combined capitals	$1,094,539	$638,372

These new home values mean significantly inflated costs for homeowners repaying a mortgage.

Mortgage repayments could be over $7,600 monthly for the median Australian house. For the median unit, repayments would cost over $4,400. And either way you slice it, the 20% standard home loan deposit costs six figures.

	Price	Monthly repayments	20% deposit
House	$1,094,539	$7,632	$218,908
Unit	$638,372	$4,451	$127,674

Repayments were calculated using the Mozo database average variable interest rate (6.85% p.a.) for owner-occupied properties (P&I, LVR < 80%) with 25-year terms. Average current on 23 January 2024.

Loan details

Repayment change if rates go up

Domain warns Aussies that high home loan interest rates are still smothering price growth, so this recovery is slower than it would have been otherwise.

However, with rate cuts potentially on the horizon in late 2024, the property market is prepared to heat up like a rocket.

“This year will once again bring Australia’s short housing supply into the spotlight, especially given the recent news that NSW won’t meet its housing target,” explains Domain chief economist Nicola Powell.

So what chance do home buyers still have? With potential pressure easing off the rental market and tax cuts to flow through from July 2024, potentially lots.

“Set realistic expectations,” says Powell. ‘“If you decide to enter the market this year, you may benefit from being flexible with your area preferences.”

First home buyers have a leg up with first home owner grants. In many states, these government schemes let individuals buy property alone or with another eligible person for deposits as small as 5%.

You can check out the hottest suburbs to get started, or compare home loans in the table below.

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can compare more home loans here.

Last updated 11 December 2024 Important disclosures and comparison rate warning*

Important disclosures

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Products are initially shown with ‘Promoted’ products at the top that we have chosen to advertise more prominently. The table beneath lists products that meet the information in the filter, sorted according to estimated repayments for loans, and interest rates for deposits. You can change the filter settings to see other products.

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Comparison rate warning

WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

How Initial Monthly Repayments figures are estimated

Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

Want free expert advice on your home loan?

If you've not found the right product here then we can put you in touch with an Aussie broker.

What you'll get:

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Guidance - every step of the way

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Want free expert advice on your home loan?

If you've not found the right product here then we can put you in touch with an Aussie broker.

What you'll get:

Advice from a fully accredited home loan expert
Help matching your needs with 25+ lenders
Someone to negotiate rates with lenders on your behalf
Guidance - every step of the way

Book an appointment with Aussie

New purchase

Refinance

Speak to a broker

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^* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

^** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Evlin DuBose

RG146

Senior Money Writer

Evlin is RG146 certified for Generic Knowledge and has become a leading voice in finance news since joining Mozo two years ago. She is regularly featured in Google's Top Stories alongside major publications like News.com.au and Yahoo Finance, and seasoned journalists. Despite being in the industry for just two years, she is Mozo's go-to writer for all things RBA and her research has been referenced by the Victorian Government. With a Bachelor of Communications degree from UTS, where she won the Dean's Merit Award and acted as the Director of Student Publications.