Can I Afford a House on $60K? (2026)

Let’s cut through the noise. Buying a home in 2026 on a $60,000 salary is challenging, but it isn't an automatic 'no.' The biggest hurdle is the massive gap between current salaries and median house prices. When we look at Sydney ($1.4M) or Melbourne ($950K), the required deposit and repayments are enormous. Your first step must be understanding your maximum borrowing power. Using current lending estimates (assuming a rate of around 6.2%), a $60,000 salary might give you borrowing power in the range of $450,000 to $550,000, depending on your debts and financial history. Before doing anything else, use our borrowing power calculator to get a personalised estimate. This figure is your financial ceiling, not necessarily the house price you can afford.

Given the median prices in 2026, aiming for a metropolitan Sydney home is likely out of reach without significant co-borrowers. Instead, focus on regional areas or smaller capitals. For example, in 2026, a target price of $500,000 to $600,000 is more realistic, putting you in sweet spots like regional NSW or parts of Adelaide. The deposit is where most first-home buyers struggle. While lenders prefer a 20% deposit (meaning $100,000 on a $500,000 home), many first-home buyers start with 5% or 10%. Remember that using a smaller deposit means you will have higher Lender's Mortgage Insurance (LMI) costs. You can explore how these costs impact your budget using our mortgage calculator. To improve your savings journey, read our guide on saving for your house deposit in Australia.

How much can you afford monthly? Lenders typically prefer that your total mortgage repayments (including interest and principal) do not exceed 30-35% of your gross income. On a $60,000 salary, this suggests a comfortable monthly repayment ceiling of $1,500 to $1,800. This is the critical figure. If you target a $550,000 home, with a 10% deposit ($55,000), your repayments would be substantial. To make this affordable, you need to look at less expensive markets. While Sydney is $1.4M, consider suburbs in Brisbane ($850K), Perth ($750K), or regional centres ($500K-$600K). Always check out the stamp duty calculator to factor in these upfront costs, as they can quickly derail your budget.

Don't forget about government assistance! Many states offer first home buyer grants or stamp duty concessions, which can save you tens of thousands of dollars upfront. Always check the state government website for the latest details. To improve your affordability, focus on reducing your debt-to-income ratio—this is often more important to lenders than your salary alone. Practical tips include saving aggressively, having an impeccable credit history, and potentially co-borrowing with a trusted partner or family member to boost your combined income and deposit. Before applying, use our can I afford a house tool to simulate different scenarios. If you want a deeper dive into managing your finances at your current income level, check out this guide on managing a $60k salary.

Q: Is a 5% deposit enough to buy a house?

A: While it might be accepted by a lender, a 5% deposit means you have a much higher Loan-to-Value Ratio (LVR). This increases your risk profile, leading to higher Lender's Mortgage Insurance (LMI) costs, which you must factor into your overall budget. 10% or 20% is always better.

Q: How much extra income do I need to comfortably afford a $500k house?

A: If repayments are capped at 35% of income, you would likely need a combined gross annual income of $100,000 to $120,000 to comfortably service the loan and still manage living expenses.

Q: Do first-home buyer grants apply everywhere?

A: No. These grants and concessions are state-specific and change frequently. You must check the official website for the state where you plan to buy (e.g., NSW, Victoria, Queensland) to ensure you qualify.