Australia 💰 AUD Last updated2026-05-28

Home loan Calculator Australia

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Quick answer (Australia)

A A$600,000 home loan at 6.0% variable over a 30-year term works out to a monthly payment of about $3,597, with total interest of $695,029 over the full term.

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Mortgage Calculator

AUD

Home Value

LTV 80% · No PMI ✓

Loan Amount

Interest Rate

Term

Total Monthly

$4,597

PITI

Principal + Interest

$3,597

54% goes to interest

Total Interest

$695,029

over 30 years

Monthly Breakdown

Principal & Interest$3,597

Property Tax (1.1%/yr)$688

Homeowner's Insurance (0.5%/yr)$313

Total Monthly$4,597

Principal vs Interest Split

46% principal

54% interest

✨ Live recalculation·Includes P&I, property tax, insurance. Estimates only — consult a licensed lender for exact rates.

Reviewed by

Aisha Rahman, CFP®, MBA LinkedIn ↗

CFP® with 12+ years in mortgage & retirement planning.

Local context

Home loans in Australia

Typical loan

$600,000

in Australia

Typical rate

6% p.a.

prime borrower, 2026

Typical term

30 years

most common

Market overview

Australian home loans are predominantly variable-rate (tied to RBA cash rate), with fixed-rate options for 1-5 years. The Big Four — CBA, Westpac, ANZ, and NAB — dominate. Following RBA rate cuts in 2024-25, owner-occupier rates have settled around 5.8-6.2% for variable and 5.5-6.0% for 3-year fixed.

Why 6% is the typical rate

6.0% is the typical variable rate for an owner-occupier loan at 80% LTV. Investor loans, interest-only, and high-LTV loans carry premiums.

Tax & regulatory notes

No mortgage interest deduction for owner-occupiers, but full deductibility for investment properties (negative gearing). Lenders Mortgage Insurance (LMI) applies below 20% deposit. First Home Owner Grant varies by state. Stamp duty applies on purchase (state-based, often 4-6%).

🧮 Worked example

A A$600,000 home loan at 6.0% variable over a 30-year term

Loan amount

$600,000

Annual interest rate

6%

Term

30 years (360 months)

Monthly payment

$3,597

Total interest paid

$695,029

Total paid (principal + interest)

$1,295,029

❓ FAQ (Australia)

Common questions in Australia.

Offset account vs redraw facility — which is better?

An offset account is a separate transaction account where any balance offsets your loan principal for interest calc — but stays accessible. A redraw lets you pull back extra repayments you've already made. Offset is more flexible and tax-efficient for investment properties; redraw is simpler and often free.

How much can I borrow in Australia?

APRA serviceability rules require lenders to qualify you at your rate + 3% buffer. As a rule of thumb, expect borrowing capacity of 5-6× your annual gross income for a couple, less for singles. Genuine savings (5%+) and clean credit history are required.

What is LMI and when does it apply?

Lenders Mortgage Insurance protects the bank if you default. It applies when your LVR exceeds 80%. The premium (typically 1-4% of loan, often capitalized into the mortgage) is paid by you but protects the lender. First Home Buyer Guarantee waives LMI for eligible buyers up to 95% LVR.

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