The short answer
Rough borrowing power from $60k to $200k salaries in Australia, how banks work it out, and the small things that cut it.
In short: On a $100,000 salary, with no debts and no kids, you can borrow roughly $460,000 right now. On $150,000 it's closer to $785,000. Banks don't use a salary multiple, though. They test your repayments at about 3% above today's rate, so your spending, your debts and even an unused credit card can move that number by tens of thousands.
I get asked this question more than any other, usually followed by "the bank's online calculator said more". So here are some honest ballpark figures, and the stuff that actually moves them.
Rough borrowing power by salary (single applicant)
$60,000 salary: about $190,000
$80,000 salary: about $325,000
$100,000 salary: about $460,000
$120,000 salary: about $590,000
$150,000 salary: about $785,000
$200,000 salary: about $1,080,000
These are a ballpark, not a promise. They assume one applicant with no kids, no car loan, credit cards or HECS-HELP, living costs of $2,600 a month, 2026-27 tax rates plus the Medicare levy, and a 30-year principal and interest loan assessed at 9.5% (a variable rate of about 6.5% plus APRA's 3% buffer). Every lender uses its own expense benchmarks and policies, so your real figure could land higher or lower. For your own numbers, try our borrowing power calculator, or send me your details and I'll run it properly.
How the bank actually works it out
Here's what most people miss: the bank isn't asking "can you afford this today?". It's asking "could you still afford it if rates were 3% higher?". The test goes like this:
Take your take-home pay. Overtime, bonuses, commission and rent often only count in part.
Take off your living costs. The bank uses whichever is higher: what you tell them, or their benchmark for your household.
Take off your other debts. Car loans, personal loans, buy now pay later, HECS-HELP, and a repayment on every credit card limit, even if you clear it every month.
Whatever's left has to cover the new loan at the test rate. That's your rate plus 3%, a buffer APRA kept in its May 2026 review.
APRA also limits how many loans banks can write at six or more times a borrower's income, so very high multiples get a much harder look.
The things quietly cutting your borrowing power
That credit card you never use. Lenders typically count around 3–3.8% of the limit as a monthly repayment. A $10,000 limit can knock $35,000–$45,000 off what you can borrow, whether there's a cent on it or not.
Rate rises. The cash rate has gone up four times this year, to 4.60%. Each 0.25% rise takes roughly 2% off your borrowing power. That's close to $10,000 on a $100,000 salary.
Kids. Each dependant lifts the bank's living-cost benchmark.
HECS-HELP. Compulsory repayments come straight out of the income the bank counts. More on that in how HECS affects your home loan.
Your last three months of spending. Banks read your statements. A few months of tidier spending before you apply does more than most people expect.
Irregular income. Casual, contract and self-employed income may be averaged or shaved down.
What actually lifts it
Cut or close cards you don't need. It's the quickest win there is. Here's my step-by-step on clearing debts before you apply.
Pay off small loans. A $4,000 personal loan can cost you more borrowing power than its balance suggests.
Add a second income. Two incomes of $100,000 each can borrow well over $1 million between them.
Take a 30-year term rather than 25.
Pick the right lender. How lenders treat bonuses, rent and HECS can swing the result. See how lender policies change what you can borrow.
What you can borrow isn't what you should borrow
The bank's maximum can leave you with nothing spare when rates rise or life changes. My rule of thumb: make sure the repayment still works at 1–2% above today's rate, and keep a few months of repayments sitting in an offset account.
Don't forget the deposit and costs
Deposit. 20% avoids lenders mortgage insurance. First home buyers can get in with 5% under the federal 5% Deposit Scheme (price cap $950,000 in Melbourne).
Stamp duty. First home buyers in Victoria pay no stamp duty up to $600,000, with a concession up to $750,000. Our stamp duty calculator does the sums.
Settlement costs. Allow for legals, inspections and a small buffer on top. On a $1 million purchase, I'd keep about $5,000 aside that you haven't budgeted for yet.
Want me to run your actual numbers? Book a chat with Gav. It's free, and you'll know where you stand before you start looking.
Frequently asked questions
How much can I borrow on a $100,000 salary in Australia?
Roughly $460,000 if you're single with no debts or dependants, at late-2026 rates. A couple earning $100,000 each could borrow well over $1 million. Your spending, debts and the lender's policy all move the number.
Do banks lend 5 or 6 times your salary?
Some people get to 5–6 times their gross income, but banks don't work off a multiple. They check whether the money left after your costs covers repayments at about 3% above the actual rate. APRA also limits how many loans they can write at six times income or more.
Does my credit card limit affect how much I can borrow?
Yes, even if you pay it off every month. Lenders count a repayment on the full limit, so a $10,000 card can cut your borrowing by tens of thousands. Lower or cancel unused limits before you apply.
Last updated: 26 October 2026.
General information only. This article does not take into account your objectives, financial situation or needs, so consider whether it is appropriate for you and seek personal advice before acting. Elephant Financial Pty Ltd trading as Elephant Advisory is an authorised credit representative (ACR 487962) of Yellow Brick Road Aggregation Pty Ltd (formerly Vow Financial Pty Ltd) (ABN 66 138 789 161), Australian Credit Licence 390261.
Gav is the person you want in your corner when it comes to property finance. After years in banking and motor trade finance, he joined Elephant early and never looked back. He's passionate about combining property and finance to help clients achieve their goals through tailored financial structuring, and he's very serious about snacks at meetings.
