How much can I borrow for a mortgage in Australia?

How much you can borrow depends on your income, living expenses, existing debts, deposit size, and the lender's serviceability criteria. Australian banks stress-test your application at your actual interest rate plus a 3% buffer (required by APRA). As a rough guide, most lenders will offer between 5 and 8 times your gross annual income, subject to your expenses and debts. Use our free borrowing power calculator to get a personalised estimate in under 60 seconds.

Does HECS-HELP debt affect my borrowing power?

Yes — HECS-HELP debt reduces your borrowing power because banks count your compulsory annual repayment as a committed expense. The repayment rate is between 1% and 10% of your gross income depending on how much you earn. For example, on a $90,000 salary the compulsory repayment is around 4.5% or $4,050 per year, which reduces the amount available for mortgage repayments. Our calculator handles HECS separately so you can see exactly how much it affects your capacity.

What is an offset account and how does it save money?

An offset account is a transaction account linked to your home loan. The balance in your offset account is subtracted from your loan balance before interest is calculated — so if you have a $600,000 loan and $50,000 in your offset, you only pay interest on $550,000. The money remains fully accessible, unlike making extra repayments. Over a 30-year loan, a consistent offset balance can save tens of thousands of dollars in interest and years off your loan term.

How much stamp duty will I pay in Australia?

Stamp duty varies significantly by state and territory in Australia. On a $700,000 property in NSW you'd pay approximately $26,775, while in Victoria it would be around $37,070. First home buyers may be eligible for full exemptions or significant concessions depending on the state and purchase price. Use our free stamp duty calculator to get an accurate figure for your state, including first home buyer concessions.

What is HEM and how does it affect my home loan?

HEM stands for Household Expenditure Measure — a benchmark Australian banks use to assess living expenses. If your declared living expenses are lower than the HEM benchmark for your household type, the bank will use HEM instead. For a single person in a capital city HEM is approximately $2,333 per month; for a couple it's around $3,500 per month. This floor means you cannot increase your borrowing power simply by declaring very low expenses.

What is LVR and does it matter?

LVR stands for Loan to Value Ratio — your loan amount divided by the property's value, expressed as a percentage. If you borrow $600,000 to buy an $800,000 property, your LVR is 75%. Most lenders require Lenders Mortgage Insurance (LMI) if your LVR exceeds 80%, which can add thousands to your upfront costs. A 20% deposit keeps your LVR at or below 80% and avoids LMI.

How do banks calculate mortgage repayments?

Mortgage repayments are calculated using the loan principal, interest rate, and loan term. The standard formula produces a fixed monthly repayment that covers interest charges plus a portion of principal, structured so the loan reaches exactly zero at the end of the term. On a $600,000 loan at 6.5% over 30 years, monthly repayments are approximately $3,793. As interest rates are variable in Australia, your repayment amount changes when the RBA moves the cash rate.

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Borrowing power

How much will a lender actually offer you? Start here before anything else.

Mortgage repayments

Monthly repayments, total interest, and offset account impact over time.

Stamp duty

Upfront costs by state, with first home buyer concessions calculated.

Your Own Terms is a free guide only. Figures are estimates based on typical Australian lender criteria and approximate market rates as of March 2026 (RBA cash rate 4.10%). We are not a financial services provider. Always consult a licensed mortgage broker before making any financial decisions.

Borrowing power

How much will a lender actually offer you? No signup, no broker, no BS. Rate: 6.5% p.a.

Who is buying?

I'm a first home buyer

Income

Your gross annual salary

Salary includes super (package total)

Gross salary is your before-tax income excluding super. If your employer quotes a "package" or "CTC" figure that includes super, toggle it on — we strip the 11% super component out automatically.

HECS / HELP student debt

Do you have a HECS-HELP debt?

Deposit

Savings available for deposit

Cash you can put towards the purchase. 20% deposit avoids Lenders Mortgage Insurance (LMI). Under 20% is fine — just factor in LMI costs separately.

Existing commitments

Monthly debt repayments

$ /mo

Minimum monthly repayments on car loans, personal loans, BNPL. Exclude HECS (handled above) and exclude living costs (below).

Monthly living expenses

$ /mo

Groceries, utilities, subscriptions, transport, eating out. Banks apply a HEM minimum floor regardless of what you declare.

I have credit cards

Dependants (children)

No HEM loading applied

Banks add ~$600/mo per child to your minimum expense floor (HEM). Two kids can reduce borrowing power by $80–120k.

Employment type

Standard assessment — banks use your current base salary at face value.

Estimated borrowing power

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$0$1.5M

Est. monthly repayment

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Deposit ratio (LVR)

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Income multiple

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Monthly surplus after repayments & expenses

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Repayments as % of take-home

What's driving your number

Rate used: 6.5% p.a. (RBA cash rate 4.10% + typical lender margin). Serviceability stress-tested at 9.5% — the APRA-required +3% buffer.

Important: These figures are rough estimates only and not financial advice. Actual borrowing capacity varies significantly by lender, credit history, employment type, and current policy. Always speak to a licensed mortgage broker before making decisions.

Mortgage repayments

Variable rate with offset account. Crunch the numbers in real time.

Loan details

Loan balance

Interest rate (p.a.)

% p.a.

Remaining term

yrs

Monthly repayment

–

Calculated from loan details

Offset account reduces interest

Current offset balance

Money in your offset reduces the balance interest is charged on — dollar for dollar.

Monthly contributions to offset

$ /mo

As this grows, more of each repayment goes to principal instead of interest.

Show my debt-free date

Based on your offset balance and monthly contributions, see when your offset will match your loan — and how much sooner you could be completely mortgage-free.

Monthly repayment

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Effective term

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Total interest

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Principal

Interest saved

Interest paid

With offset Without offset

Note: Assumes a standard variable rate loan where repayment stays fixed and growing offset accelerates principal reduction. Rates indicative only.

Stamp duty calculator

All Australian states and territories, including first home buyer concessions.

Property details

State / Territory

Property type

Investment properties are ineligible for FHB concessions in all states.

Purchase price

Buyer status

I am a first home buyer

Stamp duty payable

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Stamp duty

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As % of price

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Total upfront est.

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Important: Stamp duty rates and thresholds change frequently. Based on state revenue office rates as of March 2026. First home buyer eligibility has specific conditions — always verify with your state revenue office or conveyancer before settlement.

Privacy policy

Last updated: March 2026

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Your Own Terms (yourownterms.com.au) is a free Australian mortgage calculator tool. We are not a financial services provider or mortgage broker.

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Disclaimer
All figures produced by this tool are estimates only and do not constitute financial advice. Always consult a licensed mortgage broker or financial adviser before making financial decisions.

Contact
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Know your numbersbefore you talk to anyone.

Borrowing power

Mortgage repayments

Stamp duty

Borrowing power

Mortgage repayments

Stamp duty calculator

Privacy policy

Know your numbers
before you talk to anyone.