The repayments on a $1,200,000 home loan are about $7,195 a month at the 6% example rate over 30 years. That is $3,321 a fortnight or $1,660 a week. Interest only at 6% is $6,000 a month. At 5% the principal and interest figure is about $6,442, and at 7% about $7,984.

Repayments on $1,200,000 by rate and term
Rate and term Monthly Fortnightly Weekly
5.5%, 30 years $6,813 $3,145 $1,572
6%, 30 years $7,195 $3,321 $1,660
6.5%, 30 years $7,585 $3,501 $1,750
6%, 25 years $7,732 $3,568 $1,784
6%, 20 years $8,597 $3,968 $1,984
9%, 30 years (assessment rate) $9,655 $4,456 $2,228
6%, interest only $6,000 $2,769 $1,385

The weekly and fortnightly columns divide the yearly cost evenly. They are not the faster true-fortnightly method. The repayment calculator runs a split or a different term.

Interest only or principal and interest on $1.2 million?

Interest only saves about $1,195 a month at first, but the balance does not fall. When a five-year interest-only period ends, the full $1,200,000 is repaid over the remaining 25 years: about $7,732 a month at 6%. Investors often choose it for cash flow. Owner-occupiers usually pay more interest overall. See interest-only home loans.

Should a $1.2 million loan be split?

Many borrowers fix part and leave part variable, for example $600,000 fixed for certainty and $600,000 variable with an offset. On a loan this size each 0.25 percentage point is about $194 a month, so the split decides how much of a rate move reaches you. See split home loans.

What income does $1.2 million need?

On our assumptions about $256,000 combined as a couple or $267,000 single with no other debts. See income needed for a $1.2m home loan. Lenders test the loan at about $9,655 a month.

What do extra repayments save on $1.2 million?

Extra money goes straight to principal, so it cuts the interest for every month that follows. Paying off a home loan faster covers the other ways to do it.

Extra repayments on $1.2 million at 6% over 30 years
Extra Time saved Interest saved
$200 a month 2.1 years $117,000
$500 a month 4.7 years $256,000
$1,000 a month 7.9 years $425,000

What does each rate rise add on $1.2 million?

  • A 0.25% rise: about $194 more a month.
  • A 0.50% rise: about $390 more a month.
  • A 1% rise: about $789 more a month.

The rate rise calculator runs your own balance and term, and the RBA cash rate page lists the next decision dates.

Does paying fortnightly help on $1.2 million?

Only if you pay half the monthly amount every fortnight. That is 26 half-payments a year, or 13 monthly repayments. On $1.2 million at 6% it clears the loan about 5.4 years sooner and saves about $295,000 of interest. Paying the fortnightly equivalent of the monthly figure saves almost nothing.

How much of each repayment is interest on $1.2 million?

In the early years, nearly all of it: of the first $7,195 repayment, $6,000 is interest and $1,195 reduces the debt.

Balance owing on $1.2 million over time, 6% and 30 years
When Balance owing Repaid so far
After 5 years $1,116,700 $83,300
After 10 years $1,004,200 $195,800
After 20 years $648,000 $552,000

How much does $1.2 million cost over the life of the loan?

At 6% over 30 years, about $1,390,100 in interest on top of the $1,200,000 borrowed, if the rate never changed. It will change: Australian lenders fix for one to five years at a time. See 30-year fixed rate home loans.

Total interest on $1.2 million over 30 years
Rate Monthly repayment Total interest
5% $6,442 $1,119,100
6% $7,195 $1,390,100
7% $7,984 $1,674,100

How much does an offset account save on $1.2 million?

  • $20,000 sitting in an offset saves about $1,200 of interest in the first year at 6%.
  • $50,000 sitting in an offset saves about $3,000 of interest in the first year at 6%.
  • $100,000 sitting in an offset saves about $6,000 of interest in the first year at 6%.

The saving repeats every year the money stays there, and it is not taxed the way savings interest is.

The same tables for a $1 million or a $1.5 million loan are worked the same way, and the repayment calculator does any amount, rate and term.

Questions people ask

What are the repayments on a $1.2 million mortgage?

About $7,195 a month at 6% over 30 years.

What are the fortnightly repayments on $1.2 million?

About $3,321 a fortnight at 6%, converted from the monthly figure.

How much interest on $1.2 million over 30 years?

About $1,390,000 at 6% if the rate stayed the same.

What are the repayments over 25 years?

About $7,732 a month at 6%.

Charles Touma structures a $1.2 million loan, including splits, offset and interest only where it suits, across lenders. A free 30-minute call covers your loan. General information only, not credit advice. Lender policies change, and your own circumstances decide what suits you.

Sources: Moneysmart, mortgage calculator; Moneysmart, home loans, checked 27 October 2026.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.