$2,526 a month · $1,165 a fortnight · $582 a week over 30 years at 6.49% — plus 25-year, interest-only, LMI and offset figures.
ESTIMATE
Illustrative estimates as of 3 November 2026, not financial advice or a loan offer. Base rate 6.49% = Canstar’s average owner-occupier variable rate (principal & interest) after the September 2026 RBA rise, before lenders pass on the 3 November rise (about 6.74% once passed on in full); RBA cash rate 4.85%, next decision 2:30pm AEDT on Tuesday 8 December 2026. Your lender’s rate, fees and assessment will differ.
Borrowing $400,000? Budget for roughly $2,526 a month, $1,165 a fortnight or $582 a week over 30 years at the 6.49% average variable rate. Once lenders pass on the RBA’s 3 November rise of 0.25 points in full, the monthly figure rises to about $2,592.
$400,000 home loan at a glance
Principal & interest, 6.49% average variable, 30 years. 25 years: $2,698/month.
Principal-and-interest repayments, rate held constant. Highlighted = average owner-occupier variable rate used throughout this article. RBA cash rate 4.85% (raised 3 November, not yet reflected in lenders’ rates); next decision 2:30pm AEDT on Tuesday 8 December 2026.
Plug in your own price and deposit
The live mortgage repayment calculator handles any property price, deposit, rate and term, monthly or fortnightly.
The Reserve Bank has lifted the cash rate five times in 2026, from 3.60% to 4.85%, most recently on 3 November. The big four passed the September rise on in full from 9 October, and Canstar estimated the average owner-occupier variable rate at 6.49% once they caught up; if the November rise is passed on in full, that average becomes about 6.74%. Sharper lenders still advertise from 5.89% and the average across every advertised product is higher at 6.75%. On $400,000, each 0.25-point step moves the 30-year repayment by about $66 a month, and the gap between the cheapest and the average rate is worth $156 a month.
Who borrows $400k? A loan this size is common for apartments and townhouses in the capitals, for houses in regional Queensland, South Australia, Western Australia and Tasmania, and for buyers who are refinancing an older loan or have a large deposit from a previous sale. Because the balance is well under the $731,000 average new owner-occupier loan (ABS, June quarter 2026), fees matter more than usual: a $395 annual package fee is about 0.10% of the loan each year, so on a small balance a no-fee basic variable loan can beat a slightly cheaper package rate.
25 vs 30 years: total interest on $400,000
Shortening the term is the most powerful way to cut interest — if the budget allows. At 6.49% a 30-year term costs $173 a month less than 25 years, but total interest climbs from $409,499 to $509,231 — an extra $99,732. A 20-year term would cost $282 a month more than 25 years and save another $94,314.
Term
Monthly
Total repaid
Total interest
Interest vs loan
20 years
$2,980
$715,185
$315,185
79%
25 years
$2,698
$809,499
$409,499
102%
30 years
$2,526
$909,231
$509,231
127%
Total cost of $400,000 at 6.49%: navy = the loan, gold = interest.Interest saved over the loan by keeping a constant balance in a 100% offset account (30-year loan, repayment unchanged).
Principal & interest vs interest-only on $400k
Interest-only (IO) periods of up to five years are mainly used by investors and by owner-occupiers managing a temporary squeeze, such as parental leave. At 6.49% the IO repayment on $400,000 is $2,163 a month, $362 less than principal and interest. The catch: after five years you still owe all $400,000, and the loan has only 25 years left to clear it, so the repayment jumps to $2,698 — $535 a month more than during the IO period, and $173 more than if you had paid P&I from day one. Over the life of the loan you pay about $30,068 extra interest, before any IO rate premium (RBA data show investor interest-only loans priced roughly 0.2 points above P&I in August 2026).
Monthly vs fortnightly vs weekly repayments on $400,000
Most Australian lenders let you choose how often you pay. If you choose a true fortnightly repayment the lender works out $1,165 — the 30-year loan simply split into 26 smaller payments a year — and it saves only a little interest. The trick is paying half the monthly amount, $1,263, every fortnight: 26 halves equal 13 monthly payments a year, so the loan is gone in about 24 years 2 months instead of 30 years and you save about $117,110 of interest. Paying a quarter of the monthly amount ($631) weekly works almost the same: about 24 years 1 month and $117,604 saved.
Frequency
25 yrs
30 yrs
Per year (30 yrs)
Total interest (30 yrs)
Monthly
$2,698
$2,526
$30,308
$509,231
Fortnightly
$1,245
$1,165
$30,293
$508,803
Weekly
$622
$582
$30,287
$508,619
“Fortnightly” and “weekly” here are the lender-calculated amounts; see the fortnightly vs monthly guide for the half-monthly method.
How an offset account changes a $400k loan
An offset account is a transaction account linked to the loan: the balance is subtracted before interest is charged, so $50,000 of savings against $400,000 means you pay interest on $350,000 — while the repayment stays at $2,526, and the extra goes straight off the principal. Because the saving equals your loan rate and is not taxed, it is worth more than a savings account paying 6.49% before tax to anyone who pays income tax.
Offset balance
Interest saved
Time saved
First-year saving
$20,000
$102,328
3 years 4 months
$1,298
$50,000
$211,068
6 years 11 months
$3,245
$100,000
$327,692
10 years 9 months
$6,490
Balance held constant for the whole loan; in practice it rises and falls with your pay cycle. Offset loans often carry a package fee or a slightly higher rate — see offset accounts explained.
What income do you need for a $400,000 mortgage?
Australian lenders do not use a fixed income multiple. They test whether you could still pay at the assessment rate — the loan rate plus APRA’s 3-point serviceability buffer, 9.49% here — after your declared living expenses (or the Household Expenditure Measure, if higher), other debts and credit-card limits. At 9.49% the 30-year repayment on $400,000 would be $3,360 a month, $835 more than you would actually pay today.
30% rule of thumb: keeping the real repayment ($2,526) under 30% of gross pay needs about $101,000 a year — a single earner on that salary takes home about $6,515 a month in 2026-27, so the repayment is 39% of take-home. A couple on $50,500 each takes home $7,345 together (34%).
APRA debt-to-income limit: since 1 February 2026 banks may write only 20% of new owner-occupier loans at a DTI of 6 or more. $400,000 ÷ 6 = $66,700 of gross income before this loan alone becomes “high DTI”.
With a 20% deposit — $100,000 on a $500,000 home — no lenders mortgage insurance applies. Borrow more than 80% of the value and the lender passes on an LMI premium, which is usually added to the loan. The table uses one lender’s indicative premium table (full-doc, May 2026); your quote will differ, and most states also charge stamp duty on the premium.
LVR
Deposit
Property price
Deposit $
LMI rate
LMI premium
Extra / month if added
85% LVR
15%
$470,588
$70,588
0.97%
$3,876
$24
90% LVR
10%
$444,444
$44,444
1.87%
$7,492
$47
95% LVR
5%
$421,053
$21,053
3.35%
$13,380
$84
5% Deposit Scheme: with a 5% deposit, $400,000 buys about $421,053. That is under the First Home Guarantee cap in NSW (Sydney + Newcastle, Lake Macquarie, Illawarra, Central Coast, Coffs Harbour–Grafton, Mid North Coast, Richmond–Tweed); regional NSW; VIC (Melbourne + Geelong); regional VIC; QLD (Brisbane + Gold Coast, Sunshine Coast); regional QLD and more — so an eligible first home buyer could skip LMI entirely and save about $13,380. See LMI explained and the First Home Guarantee 2026 rules.
Fun equivalent: $400k in flat whites
Fun equivalent: the 30-year repayment spread over 365 days, at roughly $5.50 a coffee.
Park savings in an offset. Every dollar in an offset account saves interest at your loan rate, tax-free. $50,000 sitting in an offset against $400k saves about $211,068 of interest over the loan and finishes it 6 years 11 months early.
Build a buffer before the November rise reaches you. The RBA lifted the cash rate again on 3 November, and Westpac and NAB pass it on from 13 November; the Board meets again at 2:30pm AEDT on Tuesday 8 December 2026. Paying the repayment you would owe at 6.99% — $2,659 instead of $2,526 — builds a redraw buffer now and covers the November rise plus one more without changing your budget.
Keep the term at 25 years if you can. A 30-year term lowers the monthly repayment by $173 but adds $99,732 of interest. You can take 30 years for flexibility and still pay the 25-year amount voluntarily.
Check LMI before you rush. At 90% LVR the indicative LMI premium on this loan is $7,492. Saving to 85% LVR, using a guarantor or qualifying for the 5% Deposit Scheme can remove or cut that cost.
Compare comparison rates. Australian lenders must show a comparison rate (based on a $150,000 loan over 25 years) that folds in most fees. Use it to compare, but remember it understates fees on large loans less than on small ones.
FAQ
What are the repayments on a $400,000 home loan?
At the 6.49% average owner-occupier variable rate (Canstar, after the September 2026 RBA rise, before lenders pass on the November rise) a $400,000 principal-and-interest loan costs about $2,526 a month over 30 years or $2,698 over 25 years. Fortnightly over 30 years it is $1,165; weekly $582.
How much income do I need for a $400k home loan?
As a rule of thumb, keeping the $2,526 monthly repayment to 30% of gross income needs about $101,000 a year. Banks assess at 9.49% (the rate plus APRA’s 3-point buffer), where the repayment would be $3,360 a month, and subtract your living costs and other debts. To stay below a debt-to-income ratio of 6 you would need at least $66,700 of gross income if this is your only debt.
How much interest will I pay on $400,000?
About $509,231 over 30 years or $409,499 over 25 years at 6.49%, if the rate never changed. Paying half the monthly repayment every fortnight cuts the 30-year interest by about $117,110.
What are interest-only repayments on $400,000?
$2,163 a month at 6.49%. If you take 5 years interest-only on a 30-year loan, repayments then jump to $2,698 for the remaining 25 years, and total interest rises to about $539,299 versus $509,231 on principal and interest. Lenders usually charge a higher rate for interest-only.
How much is LMI on a $400k loan?
Using one lender’s indicative premium table (May 2026), LMI on $400,000 is roughly $3,876 at 85% LVR, $7,492 at 90% and $13,380 at 95%. There is no LMI with a 20% deposit or under the 5% Deposit Scheme.
Can I use the 5% Deposit Scheme for a $400k loan?
A $400,000 loan with a 5% deposit buys about $421,053, which is within the First Home Guarantee price cap in: NSW (Sydney + Newcastle, Lake Macquarie, Illawarra, Central Coast, Coffs Harbour–Grafton, Mid North Coast, Richmond–Tweed); regional NSW; VIC (Melbourne + Geelong); regional VIC; QLD (Brisbane + Gold Coast, Sunshine Coast); regional QLD; WA (Perth); regional WA; SA (Adelaide); regional SA; TAS (Hobart); regional TAS; ACT (whole territory); NT (Darwin); regional NT. Under the scheme there is no LMI, no income cap and unlimited places (from 1 October 2025).
RBA cash rate target 4.85%: raised 0.25 points on 3 November 2026, effective 4 November (the Monetary Policy Board voted 6–3). It was the fifth rise of 2026, after February, March, May and September. The Board’s next decision is at 2:30pm AEDT on Tuesday 8 December 2026.
Average owner-occupier variable rate (P&I) 6.49%: Canstar estimate once the September rise was passed on (29 September 2026), in line with RBA Table F6 — new owner-occupier variable loans averaged 6.23% in August 2026, before the rise. Canstar’s average advertised rate across its whole database was 6.75% (13 October 2026) and the lowest variable rate was 5.89% (20 October 2026). On 4 November Westpac and NAB said they will pass the November rise on in full to variable home loans from 13 November (Westpac’s lowest variable rate goes from 6.24% to 6.49%); CBA and ANZ had not yet confirmed. Passed on in full, the rise lifts the average to about 6.74%.
Fixed rates: big-four 1–2 year fixed rates ranged from 6.49% (ANZ) to 6.81% (NAB 2-year) in October 2026; the lowest fixed rate on Canstar was 5.79% (1-year).
APRA serviceability buffer: 3 percentage points above the loan rate (kept unchanged in APRA’s May 2026 review). From 1 February 2026 no more than 20% of a bank’s new owner-occupier lending (and separately investor lending) may be at a debt-to-income ratio of 6 or more.
LMI: indicative full-doc premiums from one lender’s table published by Home Loan Experts (updated 18 May 2026); insurers price individually and state stamp duty on the premium may apply (none in NSW).
5% Deposit Scheme (First Home Guarantee): Housing Australia rules from 1 October 2025 — unlimited places, no income caps; Darwin cap raised to $750,000 from 1 July 2026.
Repayments use standard amortisation (monthly, fortnightly or weekly compounding to match the payment) with the rate held constant for the whole term; real loans calculate interest daily and rates change.