$600k Borrowed, $1.4m Repaid: Does Home Ownership Still Build Wealth?

Hey everyone,

I recently took out a $600k mortgage, and with all the talk about upcoming rate hikes, I've been thinking a lot about what "wealth building" actually means for the average homeowner. I also think that I'm having a typical buyer's remorse that a see a lot of first home buyers tend to experience.

When I ran the numbers, I realised that over a 30-year term, if I continue making the required repayments (especially if rates remain elevated), I could end up paying back close to $1.4 million in total to the bank.

I understand that's how mortgages and interest work, and I know inflation changes the real value of money over time. But seeing that I'd potentially pay back more than double what I borrowed was still pretty confronting.

I was reading this article on the latest RBA rate rise expectations:

https://www.mypaycalculator.com.au/news/rba-september-2026-rate-rise/

It made me wonder:

• Is a mortgage still one of the best wealth-building tools available, or has it become a financial burden we're conditioned to accept?
• When people say "your house is your biggest asset," are they accounting for the fact that many homeowners will pay back 2x+ the original loan amount?
• How much of the wealth generated from rising property prices actually ends up with homeowners versus banks?
• If rates stay higher for longer, do you think property will continue to outperform other asset classes over the next 20-30 years?
• At what point does the cost of debt outweigh the benefits of home ownership?

If someone borrows $600k, repays $1.4m over 30 years, and sells the property for $1.5m decades later (btw I don't think the 200sqm unit that I bought will go over $1mm), have they really built significant wealth, or have they simply transferred a large portion of that wealth to the bank while assuming all the risk along the way?

Curious to hear you guys think about this. Am I looking at it the wrong way, or does the traditional path to wealth deserve a closer look in a higher-rate environment?