Estimate how much you can borrow for a home loan based on your income, expenses and the current interest rate. Includes the APRA 3% stress-test buffer.
Estimated Borrowing Power
This is the estimated maximum loan amount lenders may offer.
APRA Stress-Test Buffer
Australian lenders must assess your ability to repay at your interest rate plus 3%. This estimate uses the buffered rate to reflect what lenders actually calculate.
Important: This is an estimate only. Actual borrowing capacity varies significantly between lenders and depends on your credit history, employment type, existing debts, number of dependants, and lender-specific policies. Speak with a mortgage broker or lender for a personalised assessment.
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Common questions
Borrowing power is the maximum amount an Australian lender will approve for a home loan. It is calculated based on your gross income, living expenses, existing debts and a mandatory 3% stress-test buffer applied above the actual interest rate. Lenders also consider your credit history, number of dependants and the loan term.
On a $100,000 gross salary with no dependants and minimal existing debts, most Australian lenders will approve approximately $500,000–$600,000 in 2026. The exact figure depends on your living expenses, the lender's assessment rate and any other financial commitments. Use our calculator for a personalised estimate.
Yes. APRA requires all Australian lenders to assess your ability to repay the loan at the actual interest rate plus 3%. This buffer significantly reduces your maximum borrowing capacity — for example, if the loan rate is 6.5%, the bank assesses your repayments at 9.5%. Our calculator applies this buffer automatically.
On a $120,000 gross income in Sydney with no dependants and minimal existing debts, most lenders would approve approximately $600,000–$720,000 in 2026 after applying the APRA 3% serviceability buffer. Sydney's high cost of living means lenders may apply slightly higher living expense benchmarks (HEM), which can reduce the maximum figure.
On a $90,000 gross salary in Brisbane with no dependants and low existing debts, most Australian lenders would estimate a borrowing capacity of approximately $450,000–$540,000 in 2026. Brisbane's living costs are generally lower than Sydney or Melbourne, which can result in slightly higher net borrowing power at equivalent income levels.
A couple with a combined gross income of $150,000 and no dependants could typically borrow approximately $750,000–$900,000 in Melbourne in 2026, depending on living expenses and existing debts. Melbourne's HEM living expense benchmarks are similar to Sydney's, so declaring accurate monthly spending is important for maximising your assessed capacity.
On an $80,000 gross salary in Adelaide with no dependants and minimal debts, most lenders would estimate a borrowing capacity of approximately $400,000–$480,000 in 2026. Adelaide's lower median property prices and living costs mean a larger proportion of income can be directed to loan repayments compared with Sydney or Melbourne.
Your city of residence influences your borrowing power mainly through living expense benchmarks. Perth's HEM figures are broadly in line with Brisbane and Adelaide — generally lower than Sydney and Melbourne — so declared expenses tend to be a little lower, which can modestly increase assessed borrowing capacity at equivalent incomes.