How Much Can I Borrow
How much can you really borrow? Clear, current answers from an Adelaide mortgage broker on what drives your borrowing power, what reduces it, and how to work out your real number.
Your borrowing power is based on your capacity to repay: your income minus tax, living expenses and existing debts, stress tested at around 3 per cent above your actual rate under the APRA serviceability buffer. There is no fixed salary multiple, and the figure varies between lenders. These guides explain what drives it and how to work out your real number.
These guides explain how much you can borrow for a home loan in Australia and what shapes it: how lenders assess capacity, the serviceability buffer, how RBA rate changes move your number, gross versus net income, why a salary multiple no longer applies, and how HECS affects borrowing after the 2025 changes. Current for 2026, written by a licensed mortgage broker.
It is about capacity to repay, not a salary multiple
Lenders work out the surplus you have after tax, living expenses and existing debts, then stress test it. There is no fixed multiple of your salary.
The serviceability buffer is the big lever
APRA requires lenders to assess you at around 3 percentage points above your actual rate, which is the main reason most people are offered less than they expect.
Debts and rates move your number
Credit card limits, car loans, HECS and the level of interest rates all change your borrowing power, sometimes by more than people realise.
Lenders differ a lot
Each lender uses its own expense benchmarks and income rules, so the same person can be offered different amounts. A new debt-to-income cap on banks from February 2026 adds another layer.
Where to get help
Because the figure depends on your full picture and varies by lender, a broker can work out your real number, explain the levers, and find the lender that suits you, usually at no cost to you.
- Borrowing power is based on capacity to repay, income minus expenses and debts, not a salary multiple.
- The APRA serviceability buffer of around 3 per cent above your rate is the main reason you are offered less than expected.
- Credit card limits, car loans and HECS all reduce your capacity; tidying them up before applying can lift it.
- From February 2026 banks are limited on lending above six times debt to income; non-bank lenders are not subject to this cap.
- Borrowing capacity varies a lot between lenders, so comparing matters.
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How Much Can I Borrow: common questions
How much can I borrow for a home loan in Australia?
It depends mainly on your income, your living expenses, your existing debts and your deposit. Lenders work out the surplus income you have left to service a loan, then apply a serviceability buffer, currently 3 per cent above your actual rate and set by APRA, to check you could cope if rates rose. Borrowing capacity can vary a lot between lenders for the same person.
How accurate is a mortgage borrowing capacity calculator?
An online borrowing calculator gives you a rough estimate by taking your income, expenses and debts and applying a typical serviceability buffer. It is a useful starting point, but only an estimate: it cannot see a particular lender policies, how they treat your income type, or the debt-to-income limits, so your real figure can come out higher or lower.
How does an RBA rate change affect my borrowing power?
When the RBA moves the cash rate, lenders generally adjust their interest rates, and because you are assessed at your rate plus a buffer, a higher rate lowers your borrowing power while a lower rate lifts it. With the cash rate at 4.35 per cent as at June 2026 after a run of rises, assessment rates are higher, which has reduced how much many people can borrow.
Do lenders use net or gross income for borrowing capacity?
Lenders generally start from your gross income, your pay before tax, but they then deduct tax, living expenses and existing debt repayments to work out the surplus you actually have to service a loan. So while the headline figure is gross, the number that matters is what is left after everything, which is closer to your net position.
How many times my salary can I borrow for a house?
There is no fixed multiple any more. Lenders do not simply lend a set number of times your salary; they assess your real capacity to repay from income minus expenses and debts, with a serviceability buffer. As a separate guardrail, from February 2026 banks are limited on how much they can lend above six times a borrower total debt to income, but that is a cap, not a target.
Does HECS debt reduce borrowing capacity in Australia?
Yes, HECS or HELP debt generally reduces your borrowing capacity, because lenders count your compulsory repayment as an ongoing commitment when they assess you. The impact has softened, though: changes through 2025 reduced repayments and gave lenders more flexibility, and some lenders now overlook HECS if it is nearly paid off. How much it affects you depends on your balance, your income and the lender.
General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.