What $800k 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 $800,000, each 0.25-point step moves the 30-year repayment by about $132 a month, and the gap between the cheapest and the average rate is worth $311 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 $800k loan is 9% above 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 $132 a month.
25 vs 30 years: total interest on $800,000
The term is a trade-off between monthly comfort and lifetime cost. At 6.49% a 30-year term costs $345 a month less than 25 years, but total interest climbs from $818,998 to $1,018,462 — an extra $199,464. A 20-year term would cost $563 a month more than 25 years and save another $188,628.
| Term | Monthly | Total repaid | Total interest | Interest vs loan |
|---|---|---|---|---|
| 20 years | $5,960 | $1,430,370 | $630,370 | 79% |
| 25 years | $5,397 | $1,618,998 | $818,998 | 102% |
| 30 years | $5,051 | $1,818,462 | $1,018,462 | 127% |
Principal & interest vs interest-only on $800k
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 $800,000 is $4,327 a month, $725 less than principal and interest. The catch: after five years you still owe all $800,000, and the loan has only 25 years left to clear it, so the repayment jumps to $5,397 — $1,070 a month more than during the IO period, and $345 more than if you had paid P&I from day one. Over the life of the loan you pay about $60,136 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 $800,000
Fortnightly pay cycles make fortnightly repayments popular in Australia. If you choose a true fortnightly repayment the lender works out $2,330 — 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, $2,526, 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 $234,220 of interest. Paying a quarter of the monthly amount ($1,263) weekly works almost the same: about 24 years 1 month and $235,208 saved.
| Frequency | 25 yrs | 30 yrs | Per year (30 yrs) | Total interest (30 yrs) |
|---|---|---|---|---|
| Monthly | $5,397 | $5,051 | $60,615 | $1,018,462 |
| Fortnightly | $2,489 | $2,330 | $60,587 | $1,017,605 |
| Weekly | $1,244 | $1,165 | $60,575 | $1,017,238 |
“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 $800k 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 $800,000 means you pay interest on $750,000 — while the repayment stays at $5,051, 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 | $110,294 | 1 year 9 months | $1,298 |
| $50,000 | $246,995 | 4 years | $3,245 |
| $100,000 | $422,136 | 6 years 11 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 $800,000 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 $800,000 would be $6,721 a month, $1,670 more than you would actually pay today.
- 30% rule of thumb: keeping the real repayment ($5,051) under 30% of gross pay needs about $202,100 a year — a single earner on that salary takes home about $11,768 a month in 2026-27, so the repayment is 43% of take-home. A couple on $101,000 each takes home $13,030 together (39%).
- 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. $800,000 ÷ 6 = $133,300 of gross income before this loan alone becomes “high DTI”.
Payslip detail: $205,000 salary after tax · $105,000 salary after tax. For the full picture see how much can I borrow.
Deposit, LMI and the 5% Deposit Scheme
With a 20% deposit — $200,000 on a $1,000,000 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% | $941,176 | $141,176 | 1.41% | $11,256 | $71 |
| 90% LVR | 10% | $888,889 | $88,889 | 2.52% | $20,128 | $127 |
| 95% LVR | 5% | $842,105 | $42,105 | 4.60% | $36,824 | $233 |
5% Deposit Scheme: with a 5% deposit, $800,000 buys about $842,105. 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); VIC (Melbourne + Geelong); QLD (Brisbane + Gold Coast, Sunshine Coast); WA (Perth); SA (Adelaide); ACT (whole territory) — so an eligible first home buyer could skip LMI entirely and save about $36,824. See LMI explained and the First Home Guarantee 2026 rules.
Fun equivalent: $800k in flat whites
Neighbouring loan amounts
| Loan | 30 yrs / month | 30 yrs / fortnight | 25 yrs / month | Interest (30 yrs) |
|---|---|---|---|---|
| $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 |
| $900,000 | $5,683 | $2,622 | $6,071 | $1,145,770 |
| $950,000 | $5,998 | $2,767 | $6,409 | $1,209,424 |
All at the 6.49% average variable rate.