Average mortgage costs have surged across Victoria across the past decade.
Victorian homeowners are now paying $453,000 more for a typical loan compared to a decade ago, amid fears interest rate hikes this year could push families to the brink.
New research from online financial comparison service Compare the Market shows the state’s average $427,000 mortgage of 2015 surged to $647,000 by 2025, despite similar interest rates across both timelines.
MoneySmart estimates show Victorians paying the average loan in 2015 would have coughed up $441,951 in interest repayments to their bank over a 30-year loan – totalling about $869,000 to clear the mortgage.
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By 2025 that three-decade interest figure had surged to $675,500 with the total cost of paying off the loan, including the principal, now a whopping $1.322m – about $453,000 more than 10 years ago.
Compare the Market property expert Andrew Winter said for many people the struggle wasn’t just getting into the market, but rather staying in their home.
“Repayments on average homes in our capital cities aren’t cheap and for many working Australians they just aren’t affordable,” Mr Winter said.
“And if the cash rate goes up again this year, I think a lot of people are really going to feel it.”
The Reserve Bank is due to next meet on February 3, with both the Commonwealth Bank and NAB expecting a rate increase of 25 basis points.
Compare The Market real estate expert Andrew Winter says shopping around to find the cheapest interest rates could save thousands across a mortgage’s life. Picture: Luke Marsden.
PropTrack data shows Greater Melbourne’s median house price ballooned from $700,000 to $1.012m in the past decade. Picture: Jake Nowakowski.
Mr Winter said homeowners and buyers should shop around to secure the cheapest interest rates possible, a step which could help save thousands of dollars across the life of a mortgage.
Compare the Market analysis of PropTrack median price data shows Canterbury, Brighton, Balnarring and Ivanhoe East’s loan repayments for houses would have all increased by more than $4000 a month, and upwards of $50,000 a year, since 2015.
This Brighton house sold for $3.1m, close to the area’s median price, in October 2025. Compare the Market analysis shows average monthly home loans repayments in the suburb hit $14,853 last year.
In Cranbourne South, this house fetched $800,000 last year. The suburb has a $799,500 median house price and its typical monthly home loan repayment reached $2797, in 2025.
The suburb’s typical house prices range from Canterbury’s $3.05m to Ivanhoe East’s $1.543m.
The lowest annual mortgage increase for houses was Cranbourne South’s $2797, based on a $799,500 median house price in 2025.
Next was Carlton on $7332 with a $1.379m median and Strathtulloh, near Melton, at $11,140 with a $630,00 median.
The repayments are based on a 30-year loan paying principal and interest, assuming a 20 per cent deposit.
Budgeting and money management service MyBudget founder and director, Tammy Barton, says far more Australians are seeking help with their finances now, compared to a decade ago. Photo: Naomi Jellicoe.
Budgeting and money management service MyBudget founder and director Tammy Barton said for already-stretched households another rate rise could push them from “just coping, into real financial stress very quickly”.
“We’re seeing pressure right across Australia, but it’s particularly tough in areas with higher property prices and larger loan sizes,” Ms Barton said.
“In Victoria, for example, even small movements in interest rates translate into much bigger dollar impacts on repayments.”
Ms Barton says being proactive is key for households experiencing financial hardship because the longer people wait to seek assistance, the fewer options they tend to have.
Ms Barton said that across the past decade, MyBudget said seen “a steady and then increasingly sharp rise in the number of Australians reaching out for help”.
“Single-parent households and families living on one income are especially vulnerable,” she said.
“With less flexibility in the budget, there’s often no easy way to absorb rising housing costs alongside everyday living expenses.”
This two-bedroom Carlton house sold for $1.339m in 2025. The inner city suburb has a $1.379m typical house price and its typical monthly home loan repayment stood at $7332 last year.
Her advice for people struggling with housing and other costs was to seek help before their situation reached crisis level.
“Acting early gives you more options – that might mean speaking to your lender about hardship arrangements, reviewing your loan or doing a proper reset of your household budget to prioritise essentials,” Ms Barton said.
“Try building even a small emergency buffer for when things get difficult, and importantly, getting support early can stop short-term pressure turning into long-term stress.”
In Ivanhoe East, this house sold for $2.3m in 2025. According to PropTrack, the area has a$2.454m median house price. Typical monthly mortgage repayments in the suburb hit $11,147 last year.
Ms Barton said the positive news was that setting a clear budget could make a huge difference for households, as could refinancing when possible, consolidating debts to reduce interest, reviewing bills and service providers, and finding small ways to save every day.
“With the right plan and guidance, people can regain control and move forward with greater confidence,” she added.
If interest rates rise in 2026, there are fears more homeowners will find it difficult to keep up with mortgage repayments.
Ray White Truganina’s Prerak Bist said a lot of Victorian investors were selling up as mortgages and land tax grew more expensive, although many interstate investors have swooped in to snap their properties up.
Mr Bist said only a small number of owner-occupiers had put homes on the market due to struggling with home loans.
This Strathtulloh house changed hands for $605,000 last year. The area has a $630,00 median house price and has experienced one of the lowest increases in average mortgage repayments in Victoria, since 2015.
However, he noted many buyers heading to Melbourne’s affordable outer west were looking at what costs they could cut back on to secure a home, such as compromising on a smaller land size.
“Because it’s an Australian dream for people to buy a house,” he said.
And lately, he’s encountered more locals going the extra mile to stay ahead of housing costs.
“This year was the first time that I’ve seen so many people working during the Christmas period and working overtime just to cover mortgages,” Mr Bist said.
MELBOURNE SUBURBS: TOP HOME LOAN INCREASES SINCE 2015
| Suburb | Monthly repayment cost 2025 | Monthly repayment costs 2015 | Repayments increase over 10 years |
| Canterbury | $17,320 | $10,853 | $6,466 |
| Brighton | $14,853 | $10,073 | $4,780 |
| Balnarring | $7,041 | $2,693 | $4,348 |
| Ivanhoe East | $11,147 | $6,976 | $4,171 |
| Hawthorn | $12,877 | $8,877 | $4,000 |
| Ivanhoe | $8,744 | $4,839 | $3,905 |
| Sorrento | $7,711 | $3,844 | $3,867 |
| Mount Eliza | $7,495 | $3,776 | $3,719 |
| Somers | $6,813 | $3,184 | $3,630 |
| Narre Warren North | $7,370 | $3,793 | $3,577 |
Source: Compare the Market, PropTrack.
Repayments are based on a 30-year loan paying principal and interest, assuming a 20% deposit, with variable interest rates of 5.46% in 2015 and 5.5% in 2025
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