Media Release

Australia’s $1 million homeownership dream

  • Buying a home worth over $611,000 will set you back $1 million
  • Sydney tops the list with most expensive median house price of $825,000, costing $1M in 11 years
  • Borrowers warned to watch out for paying higher costs than necessary!

January 12, 2015, Sydney, Australia – The Australian dream of homeownership carries a $1 million price tag for many, following new research by one of Australia's biggest comparison websites

The research found that Australians with a mortgage of at least $489,300 will cost $1 million over the life of a 30-year loan, using the average variable interest rate of about 5.5 percent.

If this mortgage size was 80 percent of the property's value, that means any property priced from $611,625 will end up costing borrowers $1 million.

Michelle Hutchison, Money Expert at, said many borrowers are being stung by this slow-burning hole in their hip pocket.

“When borrowers look at how much they can afford to repay for a home loan, they might not look down the track to how much they end up spending. The danger lies with spending a lot more than necessary.

“While it’s likely that your home will increase in value over a 30-year loan term, it might not compensate the cost of a home loan as the money you end up spending can be greatly increased if you have a small deposit and don’t shop around for a good value deal,” she said.

Across the country, Sydney tops the list for the most expensive median house price of $825,000 according to figures by CoreLogic RP Data. For this price tag, borrowers will hit the $1 million mark by year 11, based on the average variable rate of about 5.5 percent, with a 20 percent deposit which would mean a loan size of $660,000.

For the median-priced house in Melbourne of $633,000, a mortgage of $506,400 (with a 20 percent deposit) would cost borrowers $1.035 million over 30 years – hitting the $1 million mark by year 24.

“This research was based on the average variable rate of about 5.5 percent but borrowers need to remember that there’s a big difference between what lenders are offering, which can mean bigger costs for a home if you’re not careful.

“For instance, the lowest ongoing variable rate on is currently 4.39 percent by Heritage Bank – that’s 1.11 percentage points lower than the average variable rate of 5.5 percent and a difference of $446 per month in mortgage repayments for a $660,000 home loan.

“Take advantage of the online tools and comparisons of different home loans to help you find the best value deals. This calculator helps borrowers determine the monthly repayments for each home loan based on any loan amount.”

Total cost to buy a median-priced house with a 20% deposit

CityMedian House PriceMortgage size with 20% depositTotal cost over 30 years

Sydney $825,000$660,000$1.349 million
Melbourne$633,000$506,400$1.035 million

Source: ranked by highest median house prices, price figures from CoreLogic RP Data, calculations and analysis by, based on average variable home loan interest rate of 5.5%, 30-year loan term and 20% deposit


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The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on's review pages for the current correct values.

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