How much can I borrow on my salary?
Borrowing power rises faster than income, because each extra dollar after tax goes straight to the repayment once living costs are covered. The table uses the same calculator, for a single applicant at two levels of living costs.
| Income a year | Income after tax a month | Living costs $2,000 a month | Living costs $3,000 a month |
|---|---|---|---|
| $60,000 | $4,198 | $267,000 | $145,000 |
| $70,000 | $4,757 | $335,000 | $213,000 |
| $80,000 | $5,323 | $404,000 | $282,000 |
| $100,000 | $6,457 | $542,000 | $420,000 |
| $120,000 | $7,590 | $680,000 | $558,000 |
| $150,000 | $9,203 | $876,000 | $754,000 |
The assumptions behind every figure on this page:
- Income tax at the ATO's 2026–27 resident rates, the 2% Medicare levy and the low income tax offset. No HELP debt, Medicare levy surcharge or salary packaging.
- Rent from investment properties counted at 80% (APRA's minimum haircut), and taxed as income.
- Living expenses: the higher of what you enter and our minimum below.
- Other loans at the repayment you enter, plus 3% of your credit card limits a month.
- The new loan tested at your rate plus 3 percentage points, principal and interest over the term.
- The lower end of the range assumes a lender assesses your living expenses 20% higher than the figure used.
How the calculator works
- Income after tax. Each applicant's income is taxed separately, then turned into a monthly figure.
- Less living expenses. APRA expects banks to use the greater of your declared expenses and a benchmark scaled to your income, usually the Household Expenditure Measure (HEM). Lenders scale their benchmarks in different ways, so the calculator doesn't use HEM. Instead it won't go below a disclosed minimum (table below).
- Less other commitments. Repayments on your other debts, and 3% of your card limits, the example rate in APRA's guidance.
- What is left pays the new loan. The calculator finds the loan whose repayment at your rate plus 3 points equals that surplus over your chosen term.
| Household | No children | Two children |
|---|---|---|
| Single | $1,787 | $2,934 |
| Couple | $3,272 | $4,293 |
That minimum is a floor to catch figures that are too low to be realistic, not an estimate of what a household spends. Lenders' benchmarks rise with income, so enter your real spending from your bank statements.
Why a bank's answer will differ
Banks and non-bank lenders run their own serviceability models. Each picks its own expense benchmark and how far to scale it with income, may discount less stable income such as overtime, bonuses or self-employed income, and may test the loan at a floor rate when that is higher than your rate plus the buffer. Non-bank lenders aren't regulated by APRA, but under the National Credit Act every lender must make reasonable inquiries and decide the loan isn't unsuitable for you.
Since 1 February 2026 APRA has also capped each bank's new lending at a debt-to-income ratio of 6 or more at 20% of its new mortgages, measured separately for owner-occupiers and investors. Loans to buy or build a new dwelling and owner-occupier bridging loans are excluded. The calculator shows your ratio so you can see whether you are in that band.
How to borrow more (or need less)
- Cut or close credit cards. A $10,000 limit you never use costs $300 a month in the assessment.
- Pay off small debts such as car loans and buy now pay later accounts.
- Choose a longer term. 30 years gives a lower repayment than 25, at the cost of more interest.
- Apply with a partner. Two incomes taxed separately go further than one.
- Need less. A bigger deposit, a cheaper property or a first home buyer scheme reduce the loan you need. Budget for stamp duty too, which usually comes from savings.
Once you have a figure, check the repayment with the mortgage repayment calculator and see how it holds up if rates rise with the mortgage stress test calculator. Our guide to low deposit home loans covers LVR and lenders mortgage insurance.
Borrowing power questions
How much can I borrow on a $150K salary in Australia?
About $754,000 to $815,000 on our assumptions: a single applicant with no debts and living costs of $2,500 a month, tested at 9.24% over 30 years. Lenders' answers vary with their expense benchmarks.
How much can I borrow on a $70k salary?
About $213,000 to $274,000 for a single person with no debts and living costs of $2,500 a month, tested at 9.24% over 30 years. Lower living costs, no credit cards and a longer term all raise the figure.
How much do you need to earn for a $700,000 mortgage?
About $132,000 a year as a single applicant with no other debts and living costs of $2,500 a month, at a 9.24% assessment rate over 30 years. For an $800,000 loan it is about $148,000.
How much income do I need to borrow $200,000?
About $60,000 a year on the same assumptions: a single applicant, no other debts, living costs of $2,500 a month and a 9.24% assessment rate over 30 years.
Does a credit card limit reduce how much I can borrow?
Yes, even with a zero balance. APRA's guidance says banks may count 3% of the total limit as a monthly repayment, so a $10,000 limit costs $300 a month in the assessment. In our $100,000 example it cuts borrowing power by about $36,000.
Why does the bank test me at a higher interest rate?
APRA expects banks to check you could afford the loan at least 3 percentage points above its rate, in case rates rise. At 6.24% that means a test rate of 9.24%. Some lenders also use a minimum floor rate.
