How Much Mortgage Can I Afford in Australia? (2026)
“How much can I borrow?” is really three questions: what a lender will approve, what repayments you can comfortably pay, and how much cash you need at settlement (deposit + stamp duty + fees). This 2026 guide covers all three — then hands you free calculators for exact numbers.
Start here: free mortgage calculator Australia.
Rule of thumb: ~30% of gross income
A simple planning check: keep principal + interest (+ strata/rates if known) near 30% of gross household income. Lenders may approve more; that does not mean you should stretch to the maximum.
| Gross income | ~30% housing budget | Rough loan range* |
|---|---|---|
| $75,000 | ~$1,875/mo | ~$350k–$420k |
| $100,000 | ~$2,500/mo | ~$470k–$560k |
| $150,000 | ~$3,750/mo | ~$700k–$850k |
*Illustrative only at mid-single-digit interest rates over 30 years. Debts, HECS, dependents and lender buffers change borrowing power significantly.
Stamp duty alone on an $800k purchase can exceed a year of repayments in some states — calculate it early.
Step-by-step: estimate your number
- Know your take-home pay — use the pay calculator (include HECS).
- Pick a comfortable repayment — not the bank maximum. Stress-test at +2–3% interest.
- Model loan size in the mortgage calculator.
- Add cash at purchase — deposit + stamp duty + legal fees.
- Get pre-approval — the only binding borrowing figure for a real purchase.
What reduces borrowing power
- Credit cards and personal loans (limits count, even if unused)
- HECS/HELP withholdings reducing net income
- Car loans, BNPL and high living costs
- Short employment history or casual income (lender-dependent)