Can I Afford a $600K House?

Buying a $600,000 home in 2026 is a huge financial step, so let's break down the actual monthly cost first. Assuming a 30-year loan term and an estimated interest rate of 6.2% (which is a rough guide and subject to change), your estimated principal and interest repayment would be around $3,680 per month. This number only covers the loan itself and does not include rates, council fees, or insurance. It’s vital to remember that lenders assess your ability to manage this payment comfortably alongside all your other living expenses. To get a precise estimate tailored to your situation, use our mortgage calculator.

When looking at your budget, you need to consider how much of your gross income these repayments represent. Financial experts generally recommend that housing costs (including rates and insurance) do not exceed 28-30% of your take-home pay. This gives you enough breathing room for groceries, transport, and fun!

The deposit is the foundation of your purchase. For a $600,000 home, your required deposit amounts are $30,000 (5%), $60,000 (10%), or $120,000 (20%). While the 20% deposit is the gold standard because it avoids extra costs, having less is possible. However, if your deposit is less than 20%, you will likely have to pay Lender’s Mortgage Insurance (LMI). LMI is an upfront fee that protects the bank, not you, and it adds thousands to your initial costs. Understanding exactly how much LMI will cost is crucial, so always check out our LMI calculator.

We've put together a guide detailing exactly how much deposit you actually need for a house in Australia in 2026, helping you plan your savings goals accurately.

Figuring out the minimum salary is complex because lenders look at your entire financial picture, not just one number. However, if we use the $3,680 monthly repayment figure, and aim for a comfortable 25% repayment ratio, your required annual gross income would need to be at least around $176,000 per year. This gives you a solid buffer for other living costs. For context, areas where median house prices hover around $600,000 in 2026 include parts of the outer suburbs of Sydney, regional Adelaide, or specific areas in Brisbane. These markets are generally more accessible than the prime metropolitan centres.

If you are unsure where you stand, use our affordability checker. It provides a much more detailed picture than just looking at the monthly repayment number!

Before you get bogged down in numbers, always investigate government assistance. Australia has numerous first home buyer grants, rebates, and concessions that can significantly reduce the cost of entry—and sometimes even cover your stamp duty or LMI. These programs are often state-specific, meaning what works in New South Wales might not apply in Queensland. It is essential to check the latest details for 2026. We recommend reading through our comprehensive guide on first-home-buyer grants for 2026 to see what potential savings you might be overlooking. Don't assume the biggest costs are always paid by you; these grants can make a massive difference to your savings timeline.