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Income required, what you need to earn to buy that house
Pick a property price and deposit. We'll work backwards through APRA stress-rate buffers, HEM expense floors, and DSR caps to estimate the household income a major lender would want to see.
Excluding stamp duty and other fees
Children or others you financially support
Credit card minimums, car loans, BNPL, HECS-HELP
Gross income required
$241,811
Annual, before tax
Loan needed
$640,000
LVR 80.0%
Monthly repayment (at displayed rate)
$3,792
Monthly repayment (stress-tested +3%)
$5,099
What APRA requires lenders to assess against
• Stress-tested at 8.89% (APRA 3% buffer).
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 expenses, must be enough to cover 38% Debt Service Ratio (DSR), meaning total debt repayments (housing + cards + car + BNPL) can’t exceed 38% of net pay. That’s the equation we’re solving here.
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 of 29 July 2026, the lowest variable rate Ratesniffers tracks is 5.89% p.a., but lenders assess that loan near 8.89% 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 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 income do I need for a $500,000 home loan?
Broadly, a $500,000 loan needs a gross household income in the region of $90,000 to $110,000, assuming modest expenses, no other debts and a clean credit history. Every credit card, car loan or dependant raises the income needed, because they reduce the surplus lenders assess.
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.
Next: see how much a given income could borrow with the borrowing power calculator, or the repayment on your target loan with the repayment calculator.