Income required, what you need to earn to buy that house
Pick a property price and deposit. We work backwards through the APRA stress-rate buffer and HEM expense floor, the same serviceability test as our borrowing power calculator, to estimate the household income a lender would want to see.
What salary do you need for a $500,000 home loan?
A $500,000 loan needs indicative gross income of about $90,000 a year with no dependants, or about $115,000 with two dependants, at 5.93% p.a. (6.11% comparison rate, calculated on a $150,000 loan over 25 years) as at 27 August 2026 plus the 3% buffer, over 30 years, with HEM living costs and no other debts. Lender assessment varies.
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is based on a loan of $150,000 over a term of 25 years.
The information provided on this site is general in nature and does not take into account your objectives, financial situation or needs. Before acting on any information, consider whether it is appropriate for you and read the relevant Credit Guide and lender disclosures.
Why the number is so high
APRA requires lenders to assess your serviceability not at the advertised rate, but at that rate plus 3%, the stress buffer designed to ensure you can still pay if rates rise.
On top of that, lenders apply the Household Expenditure Measure (HEM) as a floor on living costs, even if you swear you live cheaper. So a single applicant gets a higher HEM if they have kids or a partner.
The remaining net income, after living expenses and existing debts, has to cover the stress-tested repayment. We search for the lowest gross income where that holds, which is the borrowing power calculator run in reverse, so both tools give the same answer. Some lenders also apply a stricter servicing cap, such as limiting total debt repayments to a share of net pay, which pushes the income they want higher.
Want a real number, not a ballpark?
These figures are estimates. A 30-min broker consult will run your specific scenario against the actual lender policies, no fees, no obligation.
Important: This calculator provides an estimate only and does not constitute credit advice. Actual rates, repayments, fees and approval are subject to lender policy and your individual circumstances. Comparison rates are based on a $150,000 loan over 25 years on a secured basis, see footer for the full disclaimer.
What income do I need to buy a house in Australia?
As a rough guide, you need gross household income of about one sixth of the loan amount, so a $600,000 loan needs roughly $100,000 to $110,000 a year. As at 27 August 2026, the lowest verified owner-occupier variable rate in Ratesniffers' 80% LVR snapshot is 5.93% p.a. (6.11% comparison rate, calculated on a $150,000 loan over 25 years), but lenders assess that loan near 8.93% p.a. once the 3% APRA buffer is added, which is why the income required looks high.
How do lenders decide the income you need?
A lender starts from the repayment on the loan assessed at your rate plus 3%, adds your living expenses (floored at the HEM benchmark) and the assessed cost of any other debts and credit-card limits, then works out the gross income that covers all of it with a surplus. That is the income you need. Because the assessment rate and expense floor are deliberately conservative, the income required is usually higher than the income that would comfortably cover the real repayment.
How can I qualify on a lower income?
Reduce or close credit cards and personal loans, add a co-borrower, bring declared expenses to a realistic level, and choose a lower rate: a sharper rate lowers the assessed repayment, so it cuts the income you need as well as the repayment you make. Compare today's cheapest rates, or check the loan a given income supports with the borrowing power calculator.
Income required questions, answered
What salary do you need for a $500,000 loan?
A $500,000 home loan is assessed on the repayment at 5.93% p.a. (6.11% comparison rate, calculated on a $150,000 loan over 25 years) as at 27 August 2026 plus the 3% APRA buffer, over a 30-year term, with living expenses at the HEM benchmark, no other debts or credit cards, and income counted after tax and the Medicare levy. Indicatively, that needs about $90,000 a year gross with no dependants, or about $115,000 with two dependants. Two incomes combine, so a couple can reach the figure jointly, while credit card limits, car loans or HECS push it up. These figures use the same method as the calculator above and are indicative, general information only; every lender assesses income, expenses and debts differently, and some apply a stricter servicing cap.
How much do you need to earn for a $700,000 mortgage?
A $700,000 mortgage is assessed on the repayment at the rate plus a 3% buffer, so the income needed is well above what the advertised repayment alone suggests. Indicatively, about $121,000 a year gross with no dependants, or about $147,000 with two dependants, assessed at the calculator's default rate as at 27 August 2026 plus the 3% APRA buffer, over a 30-year term, with living expenses at the HEM benchmark, no other debts or credit cards, and income counted after tax and the Medicare levy. Two incomes combine, so a couple can reach the figure jointly, while credit card limits, car loans or HECS push it up. These figures use the same method as the calculator above and are indicative, general information only; every lender assesses income, expenses and debts differently, and some apply a stricter servicing cap.
How much income do I need for a $800,000 mortgage in Australia?
An $800,000 mortgage sits near the top of what a single income supports, so most households borrowing this much are couples. Indicatively, about $136,000 a year gross with no dependants, or about $164,000 with two dependants, assessed at the calculator's default rate as at 27 August 2026 plus the 3% APRA buffer, over a 30-year term, with living expenses at the HEM benchmark, no other debts or credit cards, and income counted after tax and the Medicare levy. Two incomes combine, so a couple can reach the figure jointly, while credit card limits, car loans or HECS push it up. These figures use the same method as the calculator above and are indicative, general information only; every lender assesses income, expenses and debts differently, and some apply a stricter servicing cap.
How much income do you need to buy a $500,000 house in Australia?
The income depends on the loan, not the price. With a 20% deposit ($100,000) the loan is $400,000, which indicatively needs about $76,000 a year gross with no dependants or about $100,000 with two dependants. With a 10% deposit ($50,000) the loan is $450,000, needing about $83,000 or $107,000 on the same basis, and lenders mortgage insurance usually applies. Both are assessed at the calculator's default rate as at 27 August 2026 plus the 3% APRA buffer, over a 30-year term, with living expenses at the HEM benchmark, no other debts or credit cards, and income counted after tax and the Medicare levy. Stamp duty and purchase costs come on top of the deposit. These figures use the same method as the calculator above and are indicative, general information only; every lender assesses income, expenses and debts differently, and some apply a stricter servicing cap.
What income do I need to buy a $750,000 house?
On a 20% deposit ($150,000) and a 6% rate, the loan is $600,000. At APRA's 9% assessment rate, single-applicant household income generally needs to be around $135,000 to $150,000 gross, depending on declared expenses, dependants and existing debts.
What counts as household income for a home loan?
Base salary, taxable bonus, overtime (often shaded to 80%), regular commission, some government allowances, rental income (typically 80%) and dividend or trust distributions with a 2-year history. Lender shading rules vary, so this calculator uses common-denominator assumptions.
Does this calculator factor in HECS / HELP debt?
It applies a deduction equivalent to your compulsory repayment band based on the gross income you enter. Lenders treat HECS/HELP as a liability that reduces serviceability, even though it never appears on your credit file.
Why is the income required so high?
Because lenders stress-test you at the rate you will pay plus a 3% buffer (APRA rules) and apply a HEM expense floor that is often higher than your actual spending. The result is conservative, and the gap between borrowing capacity and sustainable repayment is real.
Can two incomes combine to qualify?
Yes. Lenders add both applicants' assessable incomes and subtract a household expense floor that is only modestly higher than a single applicant's, so two incomes usually lift borrowing power more than proportionally. Both applicants' debts and credit-card limits are counted too.
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is based on a loan of $150,000 over a term of 25 years.
The information provided on this site is general in nature and does not take into account your objectives, financial situation or needs. Before acting on any information, consider whether it is appropriate for you and read the relevant Credit Guide and lender disclosures.
Related calculators and rate tables
- Borrowing power calculator: the same serviceability test run forwards, from income to maximum loan.
- Mortgage repayment calculator: the monthly repayment on the loan a given income qualifies for.
- Compare current home loan rates: a lower rate lowers the assessed repayment and the income required with it.
- Refinance home loan rates: for households already holding a loan that want the income test to work harder.
- Guide to borrowing power: the buffer, HEM and shading rules explained in plain language.
The income figures above are gross; work out what that actually lands as take-home pay with the income tax calculator.