How Much Can I Borrow in Australia? By Salary, 2026

Quick answer: Most Australian first home buyers can borrow roughly 5-6× gross income before APRA buffer and HEM kick in. After those constraints, real borrowing power lands at 4.5-5.2× gross income for a single applicant with no dependants and minimal liabilities. The salary tables below give the range for your specific income.

Rate assumptions: the tables below use an illustrative 6.0% variable rate stress-tested at 9.0% under the APRA 3% buffer. Your own rate will likely differ, so treat these ranges as a guide and run your numbers in the live borrowing power calculator. The scheme side is simpler than it used to be: the 5% Deposit Scheme has had no income caps and no place limits since 1 October 2025, so for most first home buyers borrowing power, not scheme eligibility, is the binding constraint.

Borrowing power by salary: 2026 ranges

The table below shows indicative borrowing-power ranges for single applicants at common Australian salary levels. The figures assume: owner-occupier loan, principal and interest, 30-year term, 6.0% offered rate stress-tested at 9.0% under the APRA 3% buffer, single applicant no dependants, no HECS debt above $20K, and minimal other liabilities. Adjust each range down by about $50K-$80K per dependant and about $30K-$60K for a HECS balance over $40K.

The range bands reflect different lender approaches to non-base income (overtime, bonuses, allowances) and discretionary expense treatment. The lower end represents conservative tier-1 banks; the upper end represents more flexible non-bank lenders.

How much can I borrow on $80,000 salary?

A single applicant on $80,000 with no dependants and minimal HECS can typically borrow $380,000 to $440,000 in 2026. With a 5% deposit (about $20,000) plus stamp duty buffer of about $5,000, this supports a target purchase price of $400,000-$465,000.

That price range puts you firmly within the 5% Deposit Scheme caps in every Australian state (no LMI) and within the FHB stamp duty exemption thresholds for NSW ($800K), VIC ($600K), QLD ($700K established / no cap new builds) and WA ($600K for contracts from 7 May 2026). SA waives duty for FHBs on new builds only (no price cap), the ACT runs an income-tested concession rather than a price cap, and TAS's established-home exemption ended on 30 June 2026. Income is no barrier to the main FHB schemes at this level; final eligibility still depends on the property type and price, your state and your ownership history.

If you have a partner also earning $80,000, combined household borrowing reaches approximately $760,000-$880,000, materially expanding your purchase price target.

How much can I borrow on $90,000 salary?

A single applicant on $90,000 with no dependants can typically borrow $440,000 to $510,000. With 5% deposit, target purchase price $465,000-$535,000.

$90K is roughly the median Australian full-time wage. At this income, the 30% marginal tax bracket applies (post Stage 3 cuts), and you qualify for Help to Buy (single threshold: $103,000 in 2026-27). Help to Buy can materially lift your purchase budget, since the government contributes up to 30% of an existing home or 40% of a new build, but at this income the 5% Deposit Scheme alone is usually the cleaner path.

How much can I borrow on $100,000 salary?

A single applicant on $100,000 can typically borrow $500,000 to $580,000. With 5% deposit, target purchase price $525,000-$610,000.

$100K sits just under the Help to Buy single-income cap ($103,000 for 2026-27, wage-indexed each 1 July). For couples and single parents, the cap is $165,000. Combined household borrowing for two $100K earners typically reaches $850,000-$1.05M, which clears the Sydney 5% Deposit Scheme cap ($1.5M after 1 October 2025).

How much can I borrow on $120,000 salary?

A single applicant on $120,000 can typically borrow $620,000 to $720,000. With 5% deposit, target purchase price $650,000-$755,000.

At $120K you exceed the Help to Buy single threshold ($103,000 in 2026-27), but the 5% Deposit Scheme (uncapped income since 1 Oct 2025) applies fully. You remain in the 30% marginal bracket (the 37% rate only starts above $135,000 in 2026-27), and FHSSS (concessional super contributions for your first-home deposit) is still attractive: each dollar saved through FHSSS is taxed at 15% inside super instead of your 30% marginal rate plus Medicare.

How much can I borrow on $150,000 salary?

A single applicant on $150,000 can typically borrow $800,000 to $920,000. With 5% deposit, target purchase price $840,000-$965,000.

At $150K you sit in the 37% marginal tax bracket. The 5% Deposit Scheme applies (no income cap). Rentvesting becomes mathematically attractive at this income level — though the 12 May 2026 federal budget restricted negative gearing on established investment property purchases (new-build carve-out preserved). See our negative gearing post-budget guide before rentvesting on established stock.

The APRA 3% serviceability buffer — the biggest hidden constraint

APRA (Australian Prudential Regulation Authority) requires the lenders it regulates (banks, credit unions and other authorised deposit-taking institutions, known as ADIs) to assess your loan as if your offered rate were 3 percentage points HIGHER. So if your loan is offered at 6.0%, the lender stress-tests your repayment capacity at 9.0%. This buffer was raised from 2.5% to 3% in October 2021 to reduce systemic risk during a rising-rate cycle.

The practical effect: your borrowing power is roughly 20-25% lower than a naive income-multiple calculation would suggest. On a 6.0% rate, a $100,000 single income that "should" borrow $600K via 6× multiple actually clears around $500-580K once the 9.0% stress test is applied.

The 3% buffer formally binds APRA-regulated lenders (ADIs) on every loan they write. Non-bank lenders sit outside APRA's prudential net (they answer to ASIC's responsible-lending rules instead) and some apply smaller buffers, which is one reason the top of each range above comes from more flexible non-bank lenders. APRA reviews the buffer regularly; a reduction back to 2.5% would expand borrowing power by 5-8% across the system. As of August 2026, the buffer remains at 3 percentage points and no reduction is on the public agenda.

HEM — the Household Expenditure Measure floor

HEM is the Melbourne Institute benchmark that most Australian lenders use for household living expenses. It includes food, transport, utilities, insurance, communications and recreation. Lenders generally use the higher of your declared expenses or the HEM benchmark.

Underreporting your real expenses does not increase borrowing power — the HEM floor protects against that. Realistic expense disclosure matched to HEM is the optimal strategy. The biggest single lever you control is reducing pre-loan debt: a credit card with $10,000 limit reduces borrowing power by roughly $40,000-$60,000 even if the balance is zero, because banks assess capacity to repay the full limit.

Combined household borrowing — what changes with a partner

A combined household application is NOT simply 2× single borrowing power. HEM is shared (a couple does not pay 2× HEM), but the buffer applies to combined income equally. The practical result: a couple usually borrows modestly more than the sum of two solo capacities, because shared living costs free up assessed surplus (the table below shows the effect). The exact uplift varies by lender.

What lowers your borrowing power most

• Each dependant child — reduces borrowing power by roughly $50,000-$80,000 (HEM scales up).
• HECS balance over $40K — banks treat HECS repayments as ongoing debt. Reduces borrowing power by $30,000-$60,000 above the $40K threshold.
• Credit card limits (not just balances) — banks assess capacity to repay the full limit. A $10,000 credit card limit cuts borrowing power by $40,000-$60,000 even if you carry zero balance. Reduce limits before applying.
• Buy-Now-Pay-Later facilities (Afterpay, Zip, Klarna) — counted as ongoing liabilities. Close unused accounts before applying.
• Investment property loans — even if positively geared, the principal payment counts against your borrowing capacity for the new loan.
• Variable income (overtime, bonuses, commissions) — most banks discount this by 20-50% in their assessment unless you can show 2+ years of consistent variable income on tax returns.

What raises your borrowing power most

• Adding a second income: shared living costs mean a couple's combined capacity usually beats the sum of two solo capacities.
• Closing credit cards and BNPL facilities — each $10K of limit closed adds roughly $50K of borrowing capacity.
• Paying down HECS toward $0 — once HECS is fully paid the ongoing-repayment offset disappears.
• Using a broker — different lenders apply HEM differently. A broker shops your application across 30-50 lenders and finds the one with the most generous assessment.
• 5% Deposit Scheme application — eliminates LMI line item, so your full deposit goes toward the property rather than the insurance premium. Effectively expands purchase capacity by $15K-$30K.

For your specific borrowing-power number, use the NestPath borrowing power calculator. To map every FHB scheme you qualify for, run the eligibility checker in 2 minutes. For your full upfront budget once you know the number, use the upfront costs calculator. Buying with less than a 20% deposit? The LMI calculator estimates the insurance premium lenders add, and the stamp duty calculator shows your state's transfer-duty bill. Once you have settled on a loan size, the mortgage repayment calculator turns it into a monthly figure.

Frequently asked questions

How much can I borrow on $80,000 salary in Australia?

$380,000 to $440,000 single (no dependants, minimal HECS, 5%+ deposit, 6.0% rate stress-tested at 9.0%). With dependants and significant HECS the range tightens to $310,000-$370,000.

How much can I borrow on $100,000 salary in Australia?

$500,000 to $580,000 single. Combined household of two $100K earners typically reaches $850,000-$1.05M.

What is the APRA 3% serviceability buffer?

APRA requires lenders to assess your loan as if the rate were 3 percentage points higher than offered. On a 6.0% loan, you are stress-tested at 9.0%. This is the primary reason borrowing-power numbers feel modest compared to simple income multiples.

How does HEM reduce my borrowing power?

HEM (Household Expenditure Measure) is the Melbourne Institute benchmark most Australian lenders use for household living expenses. They generally use the higher of your declared expenses or HEM. Underreporting expenses does not help; HEM acts as the floor.

Do dependants reduce how much I can borrow?

Yes — each dependant adds $400-$700/month to assumed HEM, translating to roughly $50,000-$80,000 less borrowing power per dependant. Family Home Guarantee partly compensates for single parents (2% deposit, no LMI).

Run your specific number

The salary tables above are starting estimates. Your real borrowing power depends on your specific liabilities, dependants, expenses and credit history. The NestPath borrowing power calculator runs your specific numbers in 60 seconds.