What you need for a $900,000 home in Australia

A $900,000 home will get you pretty far in most places in Australia, though the value varies significantly depending on location.

According to CoreLogic's March 2025 Home Value Index, the national median dwelling value is now $820,300. Sydney remains the most expensive market with a median value of $1.2m, while Canberra sits at $854,400. Brisbane, Adelaide and Perth have all seen strong growth, with median values reaching $899,800, $828,000 and $806,200 respectively, all now exceeding Melbourne's median of $781,300 (all numbers rounded).

Let's dive into what you'll need when going for a home loan at this price level, including deposit requirements and income needed to manage monthly repayments.

How much do you need to buy a $900,000 home?

When you take out a home loan, you'll need to also make sure you've got a deposit. The typical home loan deposit is 20% of the property's purchase price, but there are instances where you can contribute as little as 5-10%.

In addition to your initial deposit, you will need to cover several upfront provider fees and government charges, such as:

• Loan application fees
• Settlement fees
• Conveyancing fees
• Property valuation fees
• Stamp duty (unless you qualify for an exemption)

These fees can add up to thousands of dollars, but you may be eligible for a stamp duty waiver if your state offers one, so make sure to check what's available in your location.

Beyond your deposit and the various fees tied to property purchase, a home loan provider will also consider your borrowing power. Different lenders may have varying criteria for calculating your borrowing power, so shop around and compare home loans if you don't get a positive response initially.

What does a deposit for a $900,000 home look like?

In Australia, buying a home usually requires a 20% deposit, meaning a $900,000 home deposit will amount to $180,000. This would put you at a loan-to-value ratio (LVR) of 80%. The benefit of this is that you can usually find a lot of competitive rates with a higher deposit.

If you don't have a 20% deposit but can afford a 10% (or even a 5%) one, consider exploring low-deposit home loans. A 10% deposit will require you to save $90,000, while a 5% deposit reduces the amount to $45,000.

Remember, however, that you'll likely need to take out Lenders Mortgage Insurance (LMI), which could increase your overall costs and expose you to higher interest rates due to your elevated LVR.

If you're short of a 20% deposit, there are some strategies to avoid paying for LMI and qualifying for higher rates. These include:

• Finding a guarantor
• Using a cash gift as part of your deposit
• Applying for a first home owner grant.

How long does it take to save a 20% deposit for a $900,000 home?

Saving up for a $180,000 deposit can take a while depending on your income. If, for example, you save $1,500 per month, it would take you about 10 years.

Here's how much you would need to save:

• If you save $3,000 per month, you'll accumulate your $180,000 deposit in 5 years.
• If you save $6,000 per month, you'll accumulate your $180,000 deposit in 2.5 years.
• If you manage to save $15,000 per month, you'll accumulate your $180,000 deposit in just 1 year.

This is assuming you're just saving without interest. With a high interest savings account, you could potentially increase your deposit faster as the effects of compound interest accelerate your savings.

It can also be a good idea to find out how much you can realistically save by creating a budget. Tools like Mozo’s budget calculator can give you an idea of what your financial situation looks like and how much you could be saving. 

How much income do you need to buy a $900,000 home?

Assuming you've saved up a 20% deposit, you'll need to get a $720,000 loan. Let's use current market data from CoreLogic and assume you're an owner-occupier, paying principal and interest, with a loan term of 25 years.

According to the latest Mozo data, average variable interest rates are around 6.43% p.a. Using a mortgage repayment calculator, your monthly repayments would be approximately $5,774. However, considering 'mortgage stress' (i.e., spending over 30% of your monthly income on repayments), you'd need to earn at least $19,247 after tax each month to comfortably manage your financial commitments.

Calculated as a yearly salary, those looking to purchase a $900,000 house would need to have an after-tax income of approximately $230,964 per year. Or, of course, you might be half of a dual income household or have the chance to partner with someone else on your potential purchase.

What $900,000 buys in different markets

Based on the latest CoreLogic data, here's what a $900,000 budget would get you in different Australian markets:

• Sydney: Well below the median home value ($1,190,616), so likely you would be looking at a unit or apartment in many areas or a house in outer suburbs.
• Melbourne: $118,682 below the median value ($781,318), offering good buying power for houses in middle-ring suburbs.
• Brisbane: Almost exactly at the median value ($899,824), providing solid options across many suburbs.
• Adelaide: $72,325 above the median value of $827,675.
• Perth: $93,795 above the median value of $806,205.
• Hobart: Well above the median value of $657,059 by $242,941.
• Darwin: Significantly above the median value ($519,287), offering access to more expensive properties.
• Canberra: Above the median value ($854,398), providing good options in many suburbs.

How to get started with a home loan

If you're prepared to buy, use borrowing calculators to gauge the size of the loan and its repayments. If you’ve already sorted that out and are ready to compare home loans, then head on over to our home loan hub or check some of the providers in the tables below …