Borrowing Power on $100,000 Salary
How much you can borrow for a home loan on a $100,000 gross annual salary. Based on bank assessment rates and the 30% serviceability rule.
Last verified: 1 July 2025On a $100,000 salary, you could borrow approximately $303,887
Based on 9.25% assessment rate (6.25% + 3% buffer) and 30% serviceability ratio over 30 years.
Monthly repayment
$1,871.08
at 6.25% over 30 years
Fortnightly repayment
$863.58
at 6.25% over 30 years
Weekly repayment
$431.79
at 6.25% over 30 years
What $303,887 Buys You
How your $303,887 borrowing power compares to median house prices across Australian capital cities (with a 20% deposit).
| City | Median | Loan needed (80%) | Affordable? |
|---|---|---|---|
| Sydney | $1,150,000 | $920,000 | Short $616,113 |
| Melbourne | $800,000 | $640,000 | Short $336,113 |
| Brisbane | $780,000 | $624,000 | Short $320,113 |
| Perth | $700,000 | $560,000 | Short $256,113 |
| Adelaide | $720,000 | $576,000 | Short $272,113 |
| Hobart | $650,000 | $520,000 | Short $216,113 |
| Canberra | $850,000 | $680,000 | Short $376,113 |
| Darwin | $500,000 | $400,000 | Short $96,113 |
Median prices are approximate mid-2025 figures. Actual prices vary by suburb.
Deposit Needed
How much deposit you need for different property values with $303,887 borrowing power.
| Deposit % | Max property | Deposit | Est. LMI |
|---|---|---|---|
| 5% | $319,881 | $15,994 | $10,636 |
| 10% | $337,652 | $33,765 | $5,470 |
| 20%(no LMI) | $379,858 | $75,972 | $0 |
LMI estimates are approximate. Actual LMI varies by lender, loan amount, and LVR.
Monthly Repayments at Current Rates
| Rate | Monthly | Fortnightly | vs 6.25% |
|---|---|---|---|
| 5.5% | $1,725.43 | $796.35 | -$145.65/mo |
| 6% | $1,821.95 | $840.90 | -$49.13/mo |
| 6.25%(current) | $1,871.08 | $863.58 | — |
| 6.5% | $1,920.77 | $886.51 | +$49.69/mo |
| 7% | $2,021.76 | $933.12 | +$150.68/mo |
| 7.5% | $2,124.82 | $980.69 | +$253.74/mo |
What Reduces Your Borrowing Power
HECS-HELP debt
Compulsory repayments are deducted from income before assessment
-$16,714
Credit card ($10K limit)
Banks assume 3% of your credit limit as a monthly commitment, even if paid in full
-$36,466
Car loan ($500/month)
Existing debt repayments directly reduce serviceability
-$60,777
Each dependant
Banks add ~$400/month per dependant to living expenses
-$48,622
How to Increase Your Borrowing Power
- Pay off debts first — closing a $10K credit card could add $36,466 to your borrowing power
- Save a bigger deposit — a 20% deposit avoids LMI (saving $10,636) and shows lenders you're a lower risk
- Longer loan term — a 35-year term increases borrowing power to approximately $311,432 ($7,545 more)
- Add a co-borrower — combining incomes significantly increases capacity — see $200K couple
- Reduce living expenses — lower declared expenses mean more income available for repayments
Lenders Mortgage Insurance (LMI)
LMI is required when your deposit is less than 20% of the property value. Here's what you'd pay on a $303,887 loan:
5% deposit (95% LVR)
$10,636
on $319,881 property
10% deposit (90% LVR)
$5,470
on $337,652 property
15% deposit (85% LVR)
$2,431
on $357,514 property
LMI can often be added to the loan (capitalised), but this increases your total debt. First home buyers may be eligible for the First Home Guarantee which allows a 5% deposit with no LMI.
Frequently Asked Questions
How much can I borrow on a $100,000 salary?
On a $100,000 gross salary, you could borrow approximately $303,887 for a home loan. Banks assess your ability to repay at 9.25% (the current rate of 6.25% plus a 3% buffer), using up to 30% of your gross income for loan serviceability.
Can I buy a house on a $100,000 salary?
With a borrowing power of $303,887, you could buy a property worth up to $379,858 with a 20% deposit. This is not enough for a median-priced house in Sydney ($1,150,000) but may require a smaller city or unit.
What deposit do I need on a $100,000 salary?
With $303,887 borrowing power, a 20% deposit of $75,972 gets you a $379,858 property with no LMI. A 10% deposit of $33,765 would mean paying approximately $5,470 in Lenders Mortgage Insurance.
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General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.
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