What you need for a $900,000 home in Australia

Home loan deposit

A $900,000 home will get you pretty far in most places in Australia.

The average house price in Sydney (according to Corelogic’s August 2023 Home Value Index) is $1,333,985. The next highest is Canberra at $839,507. So, aiming at this high price point is certainly in the ballpark for a pretty good property.

Let’s dive into this as there are a couple of things you’ll need when going for a home loan at this price level. This includes aspects such as the deposit needed for a $900,000 home and the income required to manage monthly repayments.

How much do you need to buy a $900,000 home loan?

When you take out a home loan, you’ll need to also make sure you’ve got a deposit. The typical home loan deposit is 20% of the property's purchase price, but there are instances where you can contribute as little as 5-10%. 

In addition to your initial deposit, you will probably need to cover several upfront provider fees and government charges, such as:

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

These fees can add up to hundreds of dollars, but you may be eligible for a stamp duty waiver if your state offers one so make sure to double check.

Beyond your deposit and the various fees tied to property purchase, a home loan provider will also consider your borrowing power. Different lenders may have varying criteria for calculating your borrowing power, so make sure to shop around and compare home loans if you don’t get a positive response initially.

What does a deposit for a $900,000 loan look like?

In Australia, buying a home usually requires a 20% deposit, meaning a $900,000 home deposit will amount to $180,000. This would put you at a loan-to-value ratio (LVR) of 80%. The benefit of this is that you can usually find a lot of competitive rates with a higher deposit/lower LVR.

If you don't have a 20% deposit but can afford a 10% (or even a 5%) one, consider exploring low-deposit home loans. A 10% deposit will require you to save $90,000, while a 5% deposit reduces the amount to $45,000.

Remember, however, that you'll likely need to take out Lenders Mortgage Insurance (LMI), which could increase your overall costs and expose you to higher interest rates due to your elevated LVR.

If you're short of a 20% deposit, there are some strategies to avoid paying for LMI and qualifying for higher rates. These include:

How long does it take to save a 20% deposit for a $900,000 home?  

Saving up for a $180,000 deposit can take a while depending on your income. If, for example, you save $1,500 per month, it would take you 10 years. 

Here’s how much you would need to save:

  • If you save $3,000 per month, you’ll accumulate your $180,000 deposit in 5 years. 
  • If you save $6,000 per month, you’ll accumulate your $180,000 deposit in 2.5 years. 
  • If you manage to save $15,000 per month, you’ll accumulate your $180,000 deposit in just 1 year.

This is assuming you’re just stashing your cash under the mattress. With a high interest savings account, you could potentially increase your deposit faster as the effects of compound interest accelerate your savings. 

It can also be a good idea to find out how much you can realistically be saving by creating a budget. Tools like Mozo’s budget calculator can give you an idea of what your financial situation looks like and how much you could be saving. 

How much income do you need to buy a $900,000 home? 

So, how much would you need to be earning for a $900,000 home? Assuming you’ve saved up a 20% deposit, you’ll need to get a $720,000 loan. Let’s assume you’re an owner-occupier, paying principal and interest, with a loan term of 25 years at the average variable interest rate of 6.60% p.a. (according to the Mozo database).

Using Mozo’s mortgage repayment calculator, your monthly instalment would be $4,907. However, considering 'mortgage stress' (i.e. spending over 30% of your monthly income on repayments), you’d need to earn at least $16,357 after tax each month to comfortably manage your financial commitments.

Calculated as a yearly salary, those looking to purchase a $900,000 house would need to have an after-tax income of $196,284 per year. Or, of course, you might be half of a dual income household or have the chance to partner with someone else on your potential purchase. 

If you’re prepared to buy, then Mozo’s handy borrowing calculator could help you gauge the size of the loan and its repayments. Already sorted that out? If you’re ready to compare home loans, then have a look at some of the featured products 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 2 November 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

  • Fixed Express Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $2,852
    Go to site

    Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Fixed Express Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $2,852
    Go to site

    Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).

  • Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.59 % p.a.
    Fixed 5 years
    Comparison rate
    6.27 % p.a.
    Initial monthly repayment
    $2,867

    Get repayment certainty with HSBC’s low 2 Year Fixed Rate Home Loan. Make up to $10,000 of extra repayments a year. The option to split your home loan between fixed and variable. Plus, score $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 28 February 2023 and settle by 30 April 2023.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    5.69 % p.a.
    Fixed 5 years
    Comparison rate
    5.97 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $10,000,000.

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    5.69 % p.a.
    Fixed 4 years
    Comparison rate
    6.23 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Convenient offset account. No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $10,000,000.

  • Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <95%
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.28 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    5.74 % p.a.
    Fixed 3 years
    Comparison rate
    6.81 % p.a.
    Initial monthly repayment
    $2,915

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Discounted Home Value Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.99 % p.a.
    Initial monthly repayment
    $2,995

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Receive $3,288 cashback when you refinance an existing home loan. Minimum loan amount of $250,000, settle within 120 days from applying.

  • Budget Home Loan

    • LVR <80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.07 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Enjoy a discounted variable home loan from IMB. Get up to $4,000 cashback (T&Cs apply). Life-of-loan discount off IMB’s standard variable interest rate. Unrestricted additional repayments. Free Internet and Mobile Banking redraws (T&Cs apply). No monthly fees to pay. Up to a 30 year loan term. Split loan available. No offset account.

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.22 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Elevate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.18 % p.a.
    Variable
    Comparison rate
    6.18 % p.a.
    Initial monthly repayment
    $3,056

    Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.

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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.

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

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.