Can I Afford a $900K House?

Let’s be honest: buying property is a massive financial undertaking, and a $900,000 price tag requires serious planning. In 2026, affordability depends less on how much you earn, and more on your spending habits and your deposit size. Generally, lenders look at your Serviceability Ratio—meaning, can your income comfortably cover the repayments? For a $900,000 home, while the required salary varies based on your existing debts, a good rule of thumb suggests you'll need a minimum gross annual salary of around $115,000 to $130,000 to comfortably manage repayments. Remember, this is just a starting point! Before you rely on general advice, use our affordability checker to get a personalised estimate based on your actual debts and spending.

The deposit is arguably the most critical piece of the puzzle. The larger your deposit, the less risk the bank sees, and the better your interest rate will be. For a $900,000 home, you’ll need deposits ranging from $45,000 (5%) to $180,000 (20%). If you are aiming for a smaller deposit, say 5% ($45,000), be prepared for Lender’s Mortgage Insurance (LMI). LMI is an expensive fee that protects the bank, not you, and it adds thousands to your costs. By contrast, if you can reach the 20% mark ($180,000), you avoid LMI entirely, saving significant money. We have a detailed guide on how much deposit you really need to help you plan your savings strategy.

Let's calculate the numbers. Assuming a 30-year loan period and an estimated interest rate of 6.2% (as of 2026 estimates), your principal repayments for a $900,000 loan would be approximately $6,150 per month. This is a significant chunk of your income! To put this into perspective: if you earn $120,000 gross per year, the repayments represent roughly 30% of your take-home pay. If your income is much lower, that percentage jumps dramatically, making the loan harder to service. We recommend running through our mortgage calculator to see how interest rate changes impact your monthly budget. Always factor in the repayment percentage when determining your true financial capacity.

A $900,000 median price point is common in established regional markets or certain suburbs of major cities like Sydney and Melbourne. It is less typical in the prime inner-city areas. When you are ready to buy, always check for local support. Firstly, explore potential government assistance. For first-time buyers, you might be eligible for grants or concessions, such as those detailed in our guide on first-home-buyer grants for 2026. Secondly, keep an eye on state-specific incentives. If you are calculating your true affordability, it’s vital to understand your costs. Before proceeding, check out our LMI calculator to understand exactly what a smaller deposit will cost you.

Q: What does 'serviceability' mean?

A: Serviceability is the measure of whether your current income can comfortably cover your existing debts (car loans, credit cards) plus the proposed new mortgage repayments. Lenders use this ratio to ensure you won't struggle financially if rates rise.

Q: Is 6.2% the rate I should expect in 2026?

A: Rates fluctuate constantly. The 6.2% figure used here is an estimate for modelling purposes. Always consult a licensed mortgage broker to get rates specific to your lending profile and the current market.

Q: Do I need a perfect credit score?

A: While a good credit history is helpful, lenders look at your entire financial picture. If you have minor credit issues, focus on paying down existing debts to improve your overall financial profile.