What $1.1m costs at November 2026 rates
The Reserve Bank has lifted the cash rate five times in 2026, from 3.60% to 4.85%, most recently on 3 November. The big four passed the September rise on in full from 9 October, and Canstar estimated the average owner-occupier variable rate at 6.49% once they caught up; if the November rise is passed on in full, that average becomes about 6.74%. Sharper lenders still advertise from 5.89% and the average across every advertised product is higher at 6.75%. On $1,100,000, each 0.25-point step moves the 30-year repayment by about $182 a month, and the gap between the cheapest and the average rate is worth $428 a month.
Sydney and inner-Melbourne territory. A $1.1m loan usually means a $1,375,000 purchase with 20% down — well above the average new loan of $731,000. Lenders will look closely at your debt-to-income ratio: $1,100,000 at APRA’s DTI threshold of 6 implies at least $183,333 of gross household income before a loan stops counting as “high DTI”, and banks may only write 20% of new owner-occupier loans above that line.
25 vs 30 years: total interest on $1,100,000
Thirty years is the standard maximum term in Australia, and most first home buyers take it. At 6.49% a 30-year term costs $475 a month less than 25 years, but total interest climbs from $1,126,122 to $1,400,386 — an extra $274,264. A 20-year term would cost $774 a month more than 25 years and save another $259,363.
| Term | Monthly | Total repaid | Total interest | Interest vs loan |
|---|---|---|---|---|
| 20 years | $8,195 | $1,966,759 | $866,759 | 79% |
| 25 years | $7,420 | $2,226,122 | $1,126,122 | 102% |
| 30 years | $6,946 | $2,500,386 | $1,400,386 | 127% |
Monthly vs fortnightly vs weekly repayments on $1,100,000
Repayment frequency is one of the cheapest levers you control. If you choose a true fortnightly repayment the lender works out $3,204 — the 30-year loan simply split into 26 smaller payments a year — and it saves only a little interest. The trick is paying half the monthly amount, $3,473, every fortnight: 26 halves equal 13 monthly payments a year, so the loan is gone in about 24 years 2 months instead of 30 years and you save about $322,053 of interest. Paying a quarter of the monthly amount ($1,736) weekly works almost the same: about 24 years 1 month and $323,410 saved.
| Frequency | 25 yrs | 30 yrs | Per year (30 yrs) | Total interest (30 yrs) |
|---|---|---|---|---|
| Monthly | $7,420 | $6,946 | $83,346 | $1,400,386 |
| Fortnightly | $3,423 | $3,204 | $83,307 | $1,399,207 |
| Weekly | $1,711 | $1,602 | $83,290 | $1,398,702 |
“Fortnightly” and “weekly” here are the lender-calculated amounts; see the fortnightly vs monthly guide for the half-monthly method.
Principal & interest vs interest-only on $1.1m
Interest-only (IO) periods of up to five years are mainly used by investors and by owner-occupiers managing a temporary squeeze, such as parental leave. At 6.49% the IO repayment on $1,100,000 is $5,949 a month, $996 less than principal and interest. The catch: after five years you still owe all $1,100,000, and the loan has only 25 years left to clear it, so the repayment jumps to $7,420 — $1,471 a month more than during the IO period, and $475 more than if you had paid P&I from day one. Over the life of the loan you pay about $82,686 extra interest, before any IO rate premium (RBA data show investor interest-only loans priced roughly 0.2 points above P&I in August 2026).
How an offset account changes a $1.1m loan
An offset account is a transaction account linked to the loan: the balance is subtracted before interest is charged, so $50,000 of savings against $1,100,000 means you pay interest on $1,050,000 — while the repayment stays at $6,946, and the extra goes straight off the principal. Because the saving equals your loan rate and is not taxed, it is worth more than a savings account paying 6.49% before tax to anyone who pays income tax.
| Offset balance | Interest saved | Time saved | First-year saving |
|---|---|---|---|
| $20,000 | $112,714 | 1 year 4 months | $1,298 |
| $50,000 | $259,202 | 3 years 1 month | $3,245 |
| $100,000 | $458,351 | 5 years 5 months | $6,490 |
Balance held constant for the whole loan; in practice it rises and falls with your pay cycle. Offset loans often carry a package fee or a slightly higher rate — see offset accounts explained.
Deposit, LMI and the 5% Deposit Scheme
With a 20% deposit — $275,000 on a $1,375,000 home — no lenders mortgage insurance applies. Borrow more than 80% of the value and the lender passes on an LMI premium, which is usually added to the loan. The table uses one lender’s indicative premium table (full-doc, May 2026); your quote will differ, and most states also charge stamp duty on the premium.
| LVR | Deposit | Property price | Deposit $ | LMI rate | LMI premium | Extra / month if added |
|---|---|---|---|---|---|---|
| 85% LVR | 15% | $1,294,118 | $194,118 | quote | n/a | — |
| 90% LVR | 10% | $1,222,222 | $122,222 | quote | n/a | — |
| 95% LVR | 5% | $1,157,895 | $57,895 | quote | n/a | — |
5% Deposit Scheme: with a 5% deposit, $1,100,000 buys about $1,157,895. That is under the First Home Guarantee cap in NSW (Sydney + Newcastle, Lake Macquarie, Illawarra, Central Coast, Coffs Harbour–Grafton, Mid North Coast, Richmond–Tweed) — so an eligible first home buyer could skip LMI entirely and save the premium. See LMI explained and the First Home Guarantee 2026 rules.
What income do you need for a $1,100,000 mortgage?
Australian lenders do not use a fixed income multiple. They test whether you could still pay at the assessment rate — the loan rate plus APRA’s 3-point serviceability buffer, 9.49% here — after your declared living expenses (or the Household Expenditure Measure, if higher), other debts and credit-card limits. At 9.49% the 30-year repayment on $1,100,000 would be $9,241 a month, $2,296 more than you would actually pay today.
- 30% rule of thumb: keeping the real repayment ($6,946) under 30% of gross pay needs about $277,800 a year — a single earner on that salary takes home about $15,115 a month in 2026-27, so the repayment is 46% of take-home. A couple on $138,900 each takes home $17,278 together (40%).
- APRA debt-to-income limit: since 1 February 2026 banks may write only 20% of new owner-occupier loans at a DTI of 6 or more. $1,100,000 ÷ 6 = $183,300 of gross income before this loan alone becomes “high DTI”.
Payslip detail: $140,000 salary after tax. For the full picture see how much can I borrow.
Fun equivalent: $1.1m in flat whites
Neighbouring loan amounts
| Loan | 30 yrs / month | 30 yrs / fortnight | 25 yrs / month | Interest (30 yrs) |
|---|---|---|---|---|
| $900,000 | $5,683 | $2,622 | $6,071 | $1,145,770 |
| $950,000 | $5,998 | $2,767 | $6,409 | $1,209,424 |
| $1,000,000 | $6,314 | $2,913 | $6,746 | $1,273,078 |
| $1,100,000 | $6,946 | $3,204 | $7,420 | $1,400,386 |
| $1,200,000 | $7,577 | $3,495 | $8,095 | $1,527,693 |
| $1,300,000 | $8,208 | $3,787 | $8,770 | $1,655,001 |
| $1,400,000 | $8,840 | $4,078 | $9,444 | $1,782,309 |
All at the 6.49% average variable rate.