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