Question 1

What is borrowing power in Australia?

Accepted Answer

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.

Question 2

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

Accepted Answer

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.

Question 3

Does the stress test buffer affect how much I can borrow?

Accepted Answer

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.

Question 4

How much can I borrow on a $120,000 income in Sydney?

Accepted Answer

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) than in other cities, which can reduce the maximum figure. Use our calculator with your actual monthly expenses for a more accurate estimate.

Question 5

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

Accepted Answer

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. The actual figure depends on your declared expenses and any existing loan commitments.

Question 6

How much can a couple borrow on a $150,000 combined income in Melbourne?

Accepted Answer

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. Dual-income applications are assessed on combined income and combined liabilities. Melbourne's HEM living expense benchmarks are similar to Sydney's, so declaring accurate monthly spending is important for maximising your assessed capacity.

Question 7

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

Accepted Answer

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, which can slightly improve assessed borrowing power relative to income.

Question 8

Does living in Perth affect how much I can borrow?

Accepted Answer

Your city of residence influences your borrowing power mainly through living expense benchmarks. Perth's HEM (Household Expenditure Measure) 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. The lender's assessment rate and your actual debts remain the biggest factors regardless of location.

Borrowing Power Calculator Australia 2025

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