Borrowing Power on $250,000 Combined (Couple)
How much a couple earning $250,000 combined can borrow for a home loan. Based on bank assessment rates and the 30% serviceability rule.
Last verified: 1 July 2025On $250,000 combined, a couple could borrow approximately $759,716
Based on 9.25% assessment rate (6.25% + 3% buffer) and 30% serviceability ratio over 30 years.
Monthly repayment
$4,677.70
at 6.25% over 30 years
Fortnightly repayment
$2,158.94
at 6.25% over 30 years
Weekly repayment
$1,079.47
at 6.25% over 30 years
What $759,716 Buys You
How your $759,716 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 $160,284 |
| Melbourne | $800,000 | $640,000 | Yes |
| Brisbane | $780,000 | $624,000 | Yes |
| Perth | $700,000 | $560,000 | Yes |
| Adelaide | $720,000 | $576,000 | Yes |
| Hobart | $650,000 | $520,000 | Yes |
| Canberra | $850,000 | $680,000 | Yes |
| 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 $759,716 borrowing power.
| Deposit % | Max property | Deposit | Est. LMI |
|---|---|---|---|
| 5% | $799,701 | $39,985 | $26,590 |
| 10% | $844,129 | $84,413 | $13,675 |
| 20%(no LMI) | $949,645 | $189,929 | $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% | $4,313.59 | $1,990.89 | -$364.12/mo |
| 6% | $4,554.88 | $2,102.25 | -$122.82/mo |
| 6.25%(current) | $4,677.70 | $2,158.94 | — |
| 6.5% | $4,801.92 | $2,216.27 | +$124.22/mo |
| 7% | $5,054.41 | $2,332.81 | +$376.71/mo |
| 7.5% | $5,312.05 | $2,451.71 | +$634.34/mo |
What Reduces Your Borrowing Power
HECS-HELP debt
Compulsory repayments are deducted from income before assessment
-$75,972
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 $26,590) and shows lenders you're a lower risk
- Longer loan term — a 35-year term increases borrowing power to approximately $778,579 ($18,863 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 $759,716 loan:
5% deposit (95% LVR)
$26,590
on $799,701 property
10% deposit (90% LVR)
$13,675
on $844,129 property
15% deposit (85% LVR)
$6,078
on $893,784 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 $250,000 combined?
A couple earning $250,000 combined could borrow approximately $759,716 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 $250,000 buy a house?
With $759,716 borrowing power, a couple could buy a property worth $949,645 with a 20% deposit. This is enough for a median-priced home in Melbourne, Brisbane, Perth, Adelaide, Hobart, Canberra, Darwin.
What deposit does a couple on $250,000 need?
A 20% deposit of $189,929 avoids LMI and lets you purchase up to $949,645. A 5% deposit of $39,985 is possible but adds approximately $26,590 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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