The average amount owed on a house varies significantly by country, but recent data from late 2025/early 2026 shows averages around $694,000 AUD for new loans in Australia and approximately $268,000 USD for average mortgage debt in the US, with figures differing by location, loan type, and age of borrower. Australians often borrow more for new purchases, while US averages reflect broader household debt.
The average Australian household carried $313,633 in total debt in June 2025, with the majority coming from home loans. Mortgages remain the dominant source of debt, while personal loans, car loans, and credit cards continue to add pressure on household budgets.
Using this free income calculator, the approximate income you need to buy a $500,000 home, assuming you need a $400,000 loan, is $77,000 gross per year, excluding superannuation.
The average new home loan in Australia is $693,801, with an average interest rate of 5.49% p.a., meaning monthly repayments of $3,935 over 30 years. Home loan statistics researched and fact-checked by our experts.
The average age to pay off a mortgage in Australia has risen significantly, with estimates placing it between 60 and 65, often extending into retirement, up from around 52 in the 1980s, due to higher house prices and later first-home purchases, with many Australians now facing debt into their 60s and even 70s, making debt-free retirement a challenge.
For a $500,000 house, your average monthly mortgage payment (principal & interest) on a 30-year loan typically falls between $2,300 and $3,400, heavily depending on the interest rate; for example, at 5.44% it's around $2,820, while a 7.10% rate makes it about $3,360, but this doesn't include taxes, insurance (PITI), which add significantly to the total monthly cost.
On a $100k salary in Australia, you might borrow between $330,000 and $600,000, but it highly depends on lender policies, interest rates, existing debts (car, credit cards), living expenses, and deposit size, with many lenders using serviceability buffers, suggesting figures closer to the lower end, while others might offer more if you have minimal expenses and debt. Use an online borrowing calculator from banks like NAB, CommBank, or ING for a personalized estimate.
To comfortably afford a 400k mortgage, you'll likely need an annual income between $100,000 to $125,000, depending on your specific financial situation and the terms of your mortgage.
How much do you need to earn to get a £100k mortgage? You would need to earn somewhere between £18,000 and £25,000 per year to get approved for a mortgage of £100,000. This is because mortgage lenders in the UK will cap your maximum borrowing at between 4.5 and 6 times your annual salary.
Data collected by NASDAQ suggests that while only 28% of homeowners below retirement age have paid off their homes, nearly 63% of those 65+ have done so. These statistics highlight Americans' importance in entering retirement with freedom from what is usually their highest monthly fixed cost.
The 2-2-2 credit rule is a guideline lenders use to assess a borrower's creditworthiness, requiring two active revolving credit accounts, open for at least two years, with a history of on-time payments for those two consecutive years, often with a minimum limit of $2,000 per account, to show financial stability for larger loans like mortgages. It demonstrates you can handle multiple credit lines responsibly, not just have a good score, building lender confidence.
Federal Reserve data shows that about 23% of Americans have no debt. Striving to live without debt is admirable, but having debt isn't automatically bad. For example, a mortgage is a significant debt, but you're building equity in an asset that's likely to appreciate over time.
Older Aussies unsurprisingly hold more in savings, with Baby Boomers having $68,185 and Gen X having $40,266, on average. Young Aussies had less than the overall average, with Gen Y saying they had $37,085 in savings and Gen Z having $16,320, on average.
100% or higher DTI - these prospective borrowers represent a huge risk and do not show an ability to make regular mortgage payments. Almost all lenders will reject an application in this instance. 75% to 99% DTI - borrowers who are very high risk.
To buy a $650,000 house in Australia, you generally need a gross annual household income between $100,000 to $140,000, with figures varying significantly by location and lender criteria, requiring a strong deposit (around $130,000 for 20%) and managing loan repayments to not exceed 30% of your income to avoid mortgage stress, often necessitating a joint income or substantial savings, as highlighted by financial experts and data from sources like Fundd, Finder, and Real Estate.
To qualify for a $500,000 loan, you generally need a strong income, often in the $100,000 to $160,000 annual range, depending heavily on your existing debts, living expenses, credit score, down payment, and the lender's specific criteria, with a typical mortgage requiring payments around 30% of your gross income. A lower debt-to-income ratio allows for more borrowing power, but lenders use complex formulas to assess your overall financial health, so a personalized borrowing calculator is crucial for an accurate estimate.
Pros and Cons of a 30-Year Fixed-Rate Mortgage. A longer repayment period qualifies buyers for lower payments or a pricier home. But the rate will be higher and you'll pay more interest over the life of the loan.
Most Americans Earn Far Less Than $100k
According to last year's YouGov data, only 18% of U.S. adults earn more than $100,000 annually. And the biggest earners are mostly men—25%—and those aged 35 to 44—25%. For comparison, just 12% of women make six figures.
In 2022 the median income in Australia was $65,000 a year according to the Australian Bureau of Statistics. Anyone making less than this amount would be considered working class. Anyone making more than $137,000 falls in the top 10% which is considered upper class.
In other words, your monthly repayments on a 30-year mortgage will be cheaper than on a 25-year mortgage with the same interest rate. That's because the capital you owe is being divided by 360 months rather than 300.
Monthly payments on a $400,000 mortgage
At a 7.00% fixed interest rate, your monthly mortgage payment on a 30-year mortgage might total $2,661 a month, while a 15-year might cost $3,595 a month.
The best way to pay off your mortgage faster is simply to make more payments. Every extra dollar reduces your loan balance and saves you money long-term. Be sure to confirm with your lender that extra payments go toward reducing your principal, not future interest.
Assuming a 30-year loan term, the monthly repayment would be approximately $2,661. To ensure that mortgage repayments do not exceed 30% of your gross monthly income, you would need to earn at least $8,870 per month, or about $106,440 annually.