"How much do I need to earn to buy a house?" is the question behind every property search, and the answer depends on the price, your deposit, your other debts and the rate the bank tests you at. The figures below come from our borrowing capacity calculator. Updated October 2026.
The short answer
With a 20% deposit and no other debts, the minimum income our borrowing capacity calculator accepts is about one-sixth of the price (one income, 6.2% rate, the calculator's standard living-cost allowance). A comfortable income sits above it:
- $500,000 home ($400,000 loan) → at least about $88,000
- $700,000 home ($560,000 loan) → at least about $111,000
- $900,000 home ($720,000 loan) → at least about $144,000
- $1,200,000 home ($960,000 loan) → at least about $193,000
These are ballparks for a 20% deposit and no other major debts. With a smaller deposit you'll need more income (you're borrowing more and may pay LMI); with a bigger deposit, less. Plug your own numbers into the affordability calculator to see which suburbs fall into your range.
Why income isn't the only number that matters
Two people earning the same salary can be approved for very different loan sizes. Lenders do not just look at income. They assess your capacity to repay using:
- Your living expenses: assessed against benchmarks, and your actual statements
- Existing debts: credit cards, car loans, buy-now-pay-later and HECS/HELP all reduce how much you can borrow
- Dependants: more dependants, lower borrowing power
- The assessment (buffer) rate, lenders test whether you could still repay if rates rose around 3% above the actual rate
A worked example
Say a couple earns $130,000 combined, has no debts and a 20% deposit. On a $700,000 home they'd borrow $560,000. At 6.2% over 30 years, repayments are $3,430 a month, but the bank tests them at 9.2%, where they are $4,587. Earning $65,000 each, the calculator puts their maximum loan at about $726,000, so they are in range. A $450-a-month car loan would cut that to about $671,000.
How to need less income
- Save a bigger deposit, every extra dollar down is a dollar you don't borrow or pay interest on. Strategies to save faster →
- Clear consumer debt first, closing an unused $10,000 credit card limit lifts a $100,000 earner's borrowing by about $46,000
- Use the 5% Deposit Scheme, buy with a 5% deposit and no LMI if you're eligible. How it works →
- Look at more affordable markets, regional and outer-suburb prices need a far lower income than inner-city
- Consider a guarantor, a parent's equity can reduce your deposit need and avoid LMI
Single income vs couple
On a single income, the same property needs proportionally more of your salary because there's only one set of living expenses spread across one income, but also only one person's debts and expenses dragging the assessment down. Single buyers often do best by targeting a lower price point, maximising deposit, and checking single-parent schemes like the Family Home Guarantee (as little as 2% deposit).
Get your real number
The figures above are a guide. Your actual borrowing power depends on your full financial picture. Two free tools will sharpen it: the borrowing capacity calculator estimates the loan you'd qualify for, and the affordability calculator maps that to suburbs you can buy in.
General information only. It does not consider your personal circumstances. Confirm your position with a licensed mortgage broker or financial adviser before acting.