How Much Can I Borrow on A$100,000 Income in Australia?
Using a 30% of gross income guide, a household earning A$100,000 a year can afford repayments of about A$2,500/month. Assessed at a 9.24% serviceability rate, that supports a property price of about A$300,576 with a 15% deposit.
A$301,000
Max Property Price
A$2,500
Max Monthly Repayment
A$45,000
Deposit
9.24%
Serviceability Rate
Australia's Serviceability Assessment vs. US 28% Rule
APRA Serviceability Buffer (+3%)
Unlike the US DTI-based rules, Australian lenders assess your ability to repay at your actual rate + 3% (or a minimum floor, whichever is higher). At 6.2% actual rate, you must demonstrate affordability at 9.24%. This buffer protects against future rate rises and tightens qualification significantly.
No Rigid DTI Limit — But DTI Caps Apply
Australia does not mandate a single front-end DTI ratio, but most lenders apply internal limits — commonly 6× annual income as a maximum total borrowing. APRA also monitors the proportion of high-DTI lending (above 6×) and can impose macroprudential limits. Lenders also conduct a Household Expenditure Measure (HEM) assessment of your living costs.
Practical guide: Australian lenders typically allow total monthly repayments (all debts) of 30–35% of gross income, subject to the serviceability buffer. On A$100,000, your comfortable repayment ceiling is roughly A$2,500/month before other debts.
How Interest Rates Change What A$100,000 Can Buy in Australia
Australian lenders assess serviceability at your rate + 3% (APRA buffer), on a 30-year loan term. Figures assume 15% down and no other debts.
| Contract rate | Assessment rate | Max loan | Max home price |
|---|---|---|---|
| 5.49% | 8.49% | A$273,000 | A$322,000 |
| 5.99% | 8.99% | A$261,000 | A$307,000 |
| 6.24% | 9.24% | A$255,000 | A$301,000 |
| 6.49% | 9.49% | A$250,000 | A$294,000 |
| 6.99% | 9.99% | A$239,000 | A$282,000 |
Australian Borrowing Calculator
Maximum Property Price
A$301,000
Based on 30% income rule
LMI Required
With a 15% deposit, your LVR exceeds 80% and Lenders Mortgage Insurance (LMI) is required. LMI can be capitalised into your loan and typically costs A$5,000–A$20,000+ depending on the loan size and LVR tier.