What $700k 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 $700,000, each 0.25-point step moves the 30-year repayment by about $116 a month, and the gap between the cheapest and the average rate is worth $272 a month.
Around the national average loan. The ABS put the average new owner-occupier loan at about $731,000 in the June quarter 2026, so a $700k loan is 4% below that benchmark. It is typical of houses in Brisbane, Perth and Adelaide and of units or outer-suburban houses in Sydney and Melbourne. Every 0.25-point RBA move changes this repayment by roughly $116 a month.
25 vs 30 years: total interest on $700,000
Shortening the term is the most powerful way to cut interest — if the budget allows. At 6.49% a 30-year term costs $302 a month less than 25 years, but total interest climbs from $716,623 to $891,155 — an extra $174,531. A 20-year term would cost $493 a month more than 25 years and save another $165,049.
| Term | Monthly | Total repaid | Total interest | Interest vs loan |
|---|---|---|---|---|
| 20 years | $5,215 | $1,251,574 | $551,574 | 79% |
| 25 years | $4,722 | $1,416,623 | $716,623 | 102% |
| 30 years | $4,420 | $1,591,155 | $891,155 | 127% |
Principal & interest vs interest-only on $700k
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 $700,000 is $3,786 a month, $634 less than principal and interest. The catch: after five years you still owe all $700,000, and the loan has only 25 years left to clear it, so the repayment jumps to $4,722 — $936 a month more than during the IO period, and $302 more than if you had paid P&I from day one. Over the life of the loan you pay about $52,619 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).
Monthly vs fortnightly vs weekly repayments on $700,000
Most Australian lenders let you choose how often you pay. If you choose a true fortnightly repayment the lender works out $2,039 — 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, $2,210, 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 $204,943 of interest. Paying a quarter of the monthly amount ($1,105) weekly works almost the same: about 24 years 1 month and $205,807 saved.
| Frequency | 25 yrs | 30 yrs | Per year (30 yrs) | Total interest (30 yrs) |
|---|---|---|---|---|
| Monthly | $4,722 | $4,420 | $53,038 | $891,155 |
| Fortnightly | $2,178 | $2,039 | $53,013 | $890,404 |
| Weekly | $1,089 | $1,019 | $53,003 | $890,083 |
“Fortnightly” and “weekly” here are the lender-calculated amounts; see the fortnightly vs monthly guide for the half-monthly method.
How an offset account changes a $700k 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 $700,000 means you pay interest on $650,000 — while the repayment stays at $4,420, 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 | $109,073 | 2 years | $1,298 |
| $50,000 | $241,083 | 4 years 6 months | $3,245 |
| $100,000 | $405,432 | 7 years 7 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.
What income do you need for a $700,000 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 $700,000 would be $5,881 a month, $1,461 more than you would actually pay today.
- 30% rule of thumb: keeping the real repayment ($4,420) under 30% of gross pay needs about $176,800 a year — a single earner on that salary takes home about $10,565 a month in 2026-27, so the repayment is 42% of take-home. A couple on $88,400 each takes home $11,598 together (38%).
- 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. $700,000 ÷ 6 = $116,700 of gross income before this loan alone becomes “high DTI”.
Payslip detail: $180,000 salary after tax · $90,000 salary after tax. For the full picture see how much can I borrow.
Deposit, LMI and the 5% Deposit Scheme
With a 20% deposit — $175,000 on a $875,000 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% | $823,529 | $123,529 | 1.33% | $9,331 | $59 |
| 90% LVR | 10% | $777,778 | $77,778 | 2.37% | $16,569 | $105 |
| 95% LVR | 5% | $736,842 | $36,842 | 4.61% | $32,291 | $204 |
5% Deposit Scheme: with a 5% deposit, $700,000 buys about $736,842. 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); regional NSW; VIC (Melbourne + Geelong); QLD (Brisbane + Gold Coast, Sunshine Coast); WA (Perth); SA (Adelaide) and more — so an eligible first home buyer could skip LMI entirely and save about $32,291. See LMI explained and the First Home Guarantee 2026 rules.
Fun equivalent: $700k in flat whites
Neighbouring loan amounts
| Loan | 30 yrs / month | 30 yrs / fortnight | 25 yrs / month | Interest (30 yrs) |
|---|---|---|---|---|
| $550,000 | $3,473 | $1,602 | $3,710 | $700,193 |
| $600,000 | $3,788 | $1,748 | $4,047 | $763,847 |
| $650,000 | $4,104 | $1,893 | $4,385 | $827,501 |
| $700,000 | $4,420 | $2,039 | $4,722 | $891,155 |
| $750,000 | $4,736 | $2,185 | $5,059 | $954,808 |
| $800,000 | $5,051 | $2,330 | $5,397 | $1,018,462 |
| $850,000 | $5,367 | $2,476 | $5,734 | $1,082,116 |
All at the 6.49% average variable rate.