Borrowing Power on $200,000 Combined (Couple)
How much a couple earning $200,000 combined can borrow for a home loan. Based on bank assessment rates and the 30% serviceability rule.
Last verified: 1 July 2025On $200,000 combined, a couple 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
- 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 a couple borrow on $200,000 combined?
A couple earning $200,000 combined could borrow approximately $607,773 for a home loan. Banks assess your combined ability to repay at 9.25% (current rate plus 3% buffer), using up to 30% of gross combined income.
Can a couple on $200,000 buy a house?
With $607,773 borrowing power, a couple could buy a property worth $759,716 with a 20% deposit. This is enough for a median-priced home in Perth, Adelaide, Hobart, Darwin.
What deposit does a couple on $200,000 need?
A 20% deposit of $151,943 avoids LMI and lets you purchase up to $759,716. A 5% deposit of $31,988 is possible but adds approximately $21,272 in LMI.
Other Combined Incomes
Compare Scenarios
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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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