Borrowing Power on $400,000 Combined (Couple)
How much a couple earning $400,000 combined can borrow for a home loan. Based on bank assessment rates and the 30% serviceability rule.
Last verified: 1 July 2025On $400,000 combined, a couple could borrow approximately $1,215,546
Based on 9.25% assessment rate (6.25% + 3% buffer) and 30% serviceability ratio over 30 years.
Monthly repayment
$7,484.33
at 6.25% over 30 years
Fortnightly repayment
$3,454.30
at 6.25% over 30 years
Weekly repayment
$1,727.15
at 6.25% over 30 years
What $1,215,546 Buys You
How your $1,215,546 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 | Yes |
| 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 $1,215,546 borrowing power.
| Deposit % | Max property | Deposit | Est. LMI |
|---|---|---|---|
| 5% | $1,279,522 | $63,976 | $42,544 |
| 10% | $1,350,607 | $135,061 | $21,880 |
| 20%(no LMI) | $1,519,433 | $303,887 | $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% | $6,901.74 | $3,185.42 | -$582.59/mo |
| 6% | $7,287.81 | $3,363.61 | -$196.51/mo |
| 6.25%(current) | $7,484.33 | $3,454.30 | — |
| 6.5% | $7,683.08 | $3,546.04 | +$198.75/mo |
| 7% | $8,087.06 | $3,732.49 | +$602.73/mo |
| 7.5% | $8,499.28 | $3,922.74 | +$1,014.95/mo |
What Reduces Your Borrowing Power
HECS-HELP debt
Compulsory repayments are deducted from income before assessment
-$121,555
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 $42,544) and shows lenders you're a lower risk
- Longer loan term — a 35-year term increases borrowing power to approximately $1,245,727 ($30,180 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 $1,215,546 loan:
5% deposit (95% LVR)
$42,544
on $1,279,522 property
10% deposit (90% LVR)
$21,880
on $1,350,607 property
15% deposit (85% LVR)
$9,724
on $1,430,054 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 $400,000 combined?
A couple earning $400,000 combined could borrow approximately $1,215,546 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 $400,000 buy a house?
With $1,215,546 borrowing power, a couple could buy a property worth $1,519,433 with a 20% deposit. This is enough for a median-priced home in Sydney, Melbourne, Brisbane, Perth, Adelaide, Hobart, Canberra, Darwin.
What deposit does a couple on $400,000 need?
A 20% deposit of $303,887 avoids LMI and lets you purchase up to $1,519,433. A 5% deposit of $63,976 is possible but adds approximately $42,544 in LMI.
Other Combined Incomes
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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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