Borrowing Power on $200,000 Salary
How much you can borrow for a home loan on a $200,000 gross annual salary. Based on bank assessment rates and the 30% serviceability rule.
Last verified: 1 July 2025On a $200,000 salary, you could borrow approximately $607,773
Based on 9.25% assessment rate (6.25% + 3% buffer) and 30% serviceability ratio over 30 years.
Monthly repayment
$3,742.16
at 6.25% over 30 years
Fortnightly repayment
$1,727.15
at 6.25% over 30 years
Weekly repayment
$863.58
at 6.25% over 30 years
What $607,773 Buys You
How your $607,773 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 $312,227 |
| Melbourne | $800,000 | $640,000 | Short $32,227 |
| Brisbane | $780,000 | $624,000 | Short $16,227 |
| Perth | $700,000 | $560,000 | Yes |
| Adelaide | $720,000 | $576,000 | Yes |
| Hobart | $650,000 | $520,000 | Yes |
| Canberra | $850,000 | $680,000 | Short $72,227 |
| Darwin | $500,000 | $400,000 | Yes |
Median prices are approximate mid-2025 figures. Actual prices vary by suburb.
Deposit Needed
How much deposit you need for different property values with $607,773 borrowing power.
| Deposit % | Max property | Deposit | Est. LMI |
|---|---|---|---|
| 5% | $639,761 | $31,988 | $21,272 |
| 10% | $675,303 | $67,530 | $10,940 |
| 20%(no LMI) | $759,716 | $151,943 | $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% | $3,450.87 | $1,592.71 | -$291.29/mo |
| 6% | $3,643.91 | $1,681.80 | -$98.26/mo |
| 6.25%(current) | $3,742.16 | $1,727.15 | — |
| 6.5% | $3,841.54 | $1,773.02 | +$99.38/mo |
| 7% | $4,043.53 | $1,866.24 | +$301.37/mo |
| 7.5% | $4,249.64 | $1,961.37 | +$507.47/mo |
What Reduces Your Borrowing Power
HECS-HELP debt
Compulsory repayments are deducted from income before assessment
-$60,777
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 $21,272) and shows lenders you're a lower risk
- Longer loan term — a 35-year term increases borrowing power to approximately $622,863 ($15,090 more)
- Add a co-borrower — combining incomes significantly increases capacity — see $400K 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 $607,773 loan:
5% deposit (95% LVR)
$21,272
on $639,761 property
10% deposit (90% LVR)
$10,940
on $675,303 property
15% deposit (85% LVR)
$4,862
on $715,027 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 $200,000 salary?
On a $200,000 gross salary, you could borrow approximately $607,773 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 $200,000 salary?
With a borrowing power of $607,773, you could buy a property worth up to $759,716 with a 20% deposit. This is not enough for a median-priced house in Sydney ($1,150,000) but is enough in Perth, Adelaide, Hobart, Darwin.
What deposit do I need on a $200,000 salary?
With $607,773 borrowing power, a 20% deposit of $151,943 gets you a $759,716 property with no LMI. A 10% deposit of $67,530 would mean paying approximately $10,940 in Lenders Mortgage Insurance.
Compare Scenarios
Related Tools
General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.
Related Articles
Find out how banks calculate your borrowing power in Australia. We break down income, expenses, HEM, and the 3% serviceability buffer.
Should You Fix Your Mortgage in 2026? Fixed vs Variable Rate AnalysisWith oil prices dropping and inflation easing, is now the time to fix your mortgage? Detailed pros and cons analysis of fixed vs variable rates in the current Australian market.
How to Save for a House Deposit in Australia: Practical StrategiesHow much deposit do you need and how long will it take? Realistic savings strategies, government schemes, and ways to fast-track your goal.