Lenders often give larger loans and financially strong borrowers lower rates because those loans earn the lender more for similar costs, and the borrowers are usually lower risk. Many lenders offer bigger discounts on loans above about $750,000 or $1 million, and some offer professional packages with waived lenders mortgage insurance. On a $1.2 million loan, a 0.15% discount is worth about $1,800 a year in interest, so it’s worth asking whether you qualify.
Who counts as a high-value borrower?
There’s no single definition, but lenders typically look for:
- A large loan, often $750,000 or more, with bigger discounts again above $1 million or $1.5 million.
- A low LVR, usually 80% or less and ideally 70% or 60%.
- High, stable income that comfortably passes serviceability at the rate plus 3 percentage points.
- Strong credit history with no recent defaults or arrears.
- Other business with the lender, such as savings, investment loans or business banking.
Why lenders favour them
| Reason | What it means for the lender |
|---|---|
| Similar costs, more revenue | Processing a $1.2 million loan costs about the same as a $400,000 loan, but earns three times the interest |
| Lower risk | Low LVR and high income mean lower expected losses |
| Competition | Lenders compete hard for these customers, so discounts are bigger |
| Cross-selling | High-value borrowers often bring other banking business |
That’s risk-based pricing in action. See how risk affects your rate.
What the discount is worth
| Loan size | Saving from a 0.15% discount | Saving from a 0.25% discount |
|---|---|---|
| $750,000 | About $1,125 a year | About $1,875 a year |
| $1,000,000 | About $1,500 a year | About $2,500 a year |
| $1,200,000 | About $1,800 a year | About $3,000 a year |
Interest saved in the first year, our calculations. Over a 30-year loan, the total saving is many times larger.
Professional packages
Some lenders offer packages for doctors, lawyers, accountants and other professionals, recognising their high and stable incomes. Benefits can include:
- Lenders mortgage insurance waived at up to 85% or 90% LVR.
- Discounted rates and waived annual package fees.
- More flexible treatment of recently started practices or contract income.
Eligibility usually depends on your occupation, registration with a professional body and minimum income. Ask lenders directly or through a broker.
How to qualify for better pricing
- Consolidate loans with one lender if it takes you into a higher loan-size tier, as long as you keep separate loan accounts for different purposes.
- Lower your LVR with savings in an offset, extra repayments or a revaluation.
- Tidy your credit, reducing unused credit card limits and avoiding unnecessary applications.
- Ask about relationship pricing if you bank with the lender for savings or business.
- Compare lenders. Large-loan discounts vary, and a broker can request pricing from several at once.
Negotiate, don’t just accept
Large-loan discounts are often not advertised and are rarely applied automatically. Ask for the best rate available for your loan size and LVR, show competing offers, and ask again if your loan balance or LVR changes. See how to negotiate a lower rate and what else affects your rate.
Frequently asked questions
What loan size gets a lower interest rate?
Many lenders start offering larger discounts from around $750,000, with further discounts above $1 million or $1.5 million. The thresholds and discounts vary by lender and change over time, so ask each lender what pricing applies at your loan size and LVR.
Do professional packages give better rates?
They can. Some lenders offer professionals such as doctors, lawyers and accountants discounted rates, waived package fees and waived lenders mortgage insurance at higher LVRs. Eligibility depends on your occupation, professional registration and income, so check each lender’s criteria.
Can I negotiate a discount on a large loan?
Yes, and large loans give you more negotiating power because the lender earns more from them. Have competing offers ready, highlight your LVR and income, and ask whether there’s a better rate for your loan size. If your lender won’t move, compare offers from other lenders.
Sources
- Canstar, Average home loan interest rates, as at 2 October 2026
- ASIC Moneysmart, Choosing a home loan
- APRA, Macroprudential policy settings, May 2026
General information only. It does not consider your objectives, financial situation or needs and is not credit, tax or financial advice.