Can I Afford a $1.0M House?

Let’s tackle the big question: Can you afford a $1,000,000 home in Australia in 2026? The short answer is: it depends heavily on your income and savings, but it’s certainly achievable with solid financial planning. When we look at a $1M property, you are entering a significant market segment. To comfortably manage the repayments and associated costs, financial experts generally suggest you need a stable income that can cover the mortgage repayments without straining your budget. While this figure changes constantly, a conservative estimate for a minimum income needed to service a $1M loan is typically in the range of $130,000 to $150,000 annually. This isn't just about the repayments; it's about your overall capacity to manage the costs of living, utilities, and rates on top of the mortgage. Before making any assumptions, use our Can I Afford a House Tool to get a personalised estimate based on your specific circumstances.

The biggest hurdle for most first-home buyers is the deposit. Lenders almost always require a deposit, and the size dictates your Loan-to-Value Ratio (LVR). If you aim for a $1,000,000 home, here’s a rough guide to deposits: A 5% deposit means saving $50,000; 10% requires $100,000; and the ideal 20% deposit means saving $200,000. Having that 20% deposit is crucial because it often means you won't have to pay Lender’s Mortgage Insurance (LMI). If your deposit is less than 20%, you'll need to factor in LMI, which is an expensive fee added to your loan. To accurately calculate potential LMI costs, check out our LMI Calculator. We have a detailed guide on building your savings for this goal here: How Much Deposit for a House in Australia 2026.

Let's talk figures. Assuming a $1,000,000 loan, a 30-year term, and an interest rate of approximately 6.2% (based on 2026 projections), your estimated monthly repayment would be around $6,200. This sounds like a lot, but it’s important to see what percentage of your income this represents. If you earn $140,000 per year, your total annual repayments would be $74,400. This means the mortgage repayments alone would take up about 53% of your gross income. This high percentage shows why affordability is so critical—experts recommend keeping mortgage repayments below 30-35% of your gross income to maintain a healthy financial buffer. Always use our Mortgage Calculator to model different interest rates and terms before you commit.

While Sydney and Melbourne are known for high-priced properties, a $1M median price point is also common in desirable regional centres. You might find suitable options in parts of Brisbane, Newcastle, or regional Gold Coast suburbs. Critically, if you are a first-home buyer, always investigate concessions! State governments offer various grants and stamp duty exemptions that can dramatically reduce your upfront costs. For the most up-to-date information on available government support, check out our guide on First Home Buyer Grants 2026. These grants can significantly offset your initial costs, making that $1M goal feel much more attainable. Remember that grants are state-specific, so know your location before you start house hunting!