Advertisement

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 tables below display a snapshot of the lowest variable home loan products for a home loan of $1 million on Canstar’s database with links to lenders’ websites available at 80% LVR in NSW, and available for Principal and Interest repayments. The results are sorted by ‘current rate’ (lowest to highest), then by provider name (alphabetically).

Top interest rates for refinance home loans

Top home loan interest rates for first home buyers

Top interest rates for investment home loans

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.

Share this article