Knowledge Centre

From $84k to $232k: the salary needed to service a mortgage across Australia

01/05/2025

How much money do single-income buyers need to earn to service a mortgage?

In order to afford the mortgage repayments on a median-priced house, you would need to earn from $112,000 per year in Hobart to $232,000 per year in Sydney.

To cover the mortgage on a median-price unit, you would need to earn from $84,000 in Darwin to $126,000 in Sydney.

Those findings are based, in part, on Domain median property price data and Mozo calculations of repaying a 30-year loan at an interest rate of 6.05% p.a.

Here are three ways to reduce your mortgage repayments:

1. Get a loan with an offset account. The more savings you park in your offset account, the less interest you'll be charged on your loan.
2. Capitalise on lump-sum payments. Use tax refunds and cash gifts to either pay down your mortgage or beef up your offset account.
3. Avoid setting-and-forgetting your home loan. People who stick with the same mortgage for 30 years generally pay more interest over the life of their loan. Instead, think about refinancing every two years or so.