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Cost of $1 million home loan

With the most recent quarterly report from Domain showing that the median house price in Sydney has broken through the $1 million barrier, it’s absolutely vital that borrowers make sure they have a cheap home loan. By cheap, we mean great value.

Home loans for a $1 million mortgage

The table below shows the highest rated products by Star Rating on Canstar’s site for a home loan of $1 million. These results are based on a principal and interest loan in New South Wales, and have links directly to the provider’s websites.

What would a $1 million home loan cost?

Let’s say you’re borrowing one million dollars. What would the repayments on your home loan be?

That depends whether you’re an owner-occupier, paying your loan off over, say, 25 years, or whether you’re an investor paying interest-only. Here are some calculations either way, based on the current average package home loan rate on CANSTAR’s database (4.27%).

$1 million debt over 25 years – Monthly repayments

Loan Type Monthly repayment
Owner-occupier $5,429
Investor (interest only) $3,558

It’s a lot of money! But… what if interest rates went up? Here’s what a 20 basis point and 30 basis point change would make to the typical; $1 million home loan repayment.

$1 million debt over 25 years – Monthly repayments after rate increase

Loan Type Current average package rate – 4.27% 20 basis point increase (4.47%) 30 basis point increase (4.57%)
Owner-occupier $5,429 $5,541 $5,598
Investor (interest only) $3,558 $3,725 $3,808

 

Get a better home loan rate!

The numbers above are based on the average package home loan rate – but there are cheaper home loan rates available. Currently on CANSTAR’s database package home loan rate vary from 3.54% to 5.23%. On a big home loan, that translates to big savings.

Compare Home Loans

Get an idea of how much you could save by using our Home Loan Comparison Calculator.

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