calendar_today

Last Updated: 25th September, 2024

This guide is designed to help you understand your monthly repayments and other important costs if you’re taking out a $400,000 home loan. We’ll walk you through key details such as interest rates, the deposit you’ll need, and any additional expenses to keep in mind so that you can feel confident about your decision.

How Much Will You Pay Per Month On A $400K Home Loan?

A mortgage repayment calculator is a helpful tool for estimating your monthly repayments based on various interest rates and loan terms. It can provide a clear picture of how different factors, such as interest rate and loan term, affect your repayments.

Here’s an estimated breakdown of monthly repayments for a $400,000 principal-and-interest home loan at different interest rates and loan terms.

Loan Term (Years) 5% Interest Rate ($) 6% Interest Rate ($) 7% interest rate ($)
15 3163 3375 3595
20 2640 2866 3101
25 2338 2577 2827
30 2147 2398 2661

These figures are rough estimates and can vary depending on your specific loan, taxes, insurance, and other related fees.


How Much Deposit Do You Need For A $400K Home Loan?

For a $400,000 home loan, most lenders require a 20% deposit, which would amount to $80,000. However, if you meet certain conditions, some lenders may allow you to borrow up to 95% of the property value, requiring a smaller deposit.

For instance, if you purchase a property worth $500,000, a $400,000 loan would require an $80,000 deposit, which is 20% of the property price. Some lenders offer the option to borrow up to 105% with a guarantor, eliminating the need for a deposit in certain cases.

Please remember that your deposit doesn’t cover additional costs like stamp duty and other fees.


Additional Homebuying Costs To Consider

In addition to your deposit, you’ll need to account for about 5% of the property value to cover additional costs such as:

  • Stamp duty
  • Mortgage registration fees
  • Lenders mortgage insurance (if applicable)
  • For a $400,000 loan, this could add an extra $20,000 in costs.

How Much Do You Need To Earn For A $400K Mortgage?

To afford a $400,000 mortgage, your gross annual income should typically fall around $80,000, assuming you don’t have other major debts. This estimate takes the following factors into account: