In short: This calculator estimates the maximum home loan a lender is likely to approve from your income, living expenses and existing debts. As a rule of thumb, a single person on $100,000 with no other debts can borrow roughly $480,000 to $550,000, because lenders test your repayments at your interest rate plus a 3 percentage point buffer, not at the rate you'll actually pay.
- Assessment rate (rate + 3% buffer)9.00%
- Monthly net income (est.)$6,173
- Monthly surplus for repayments$3,373
- Repayment at your actual rate$2,512 / month
Indicative only. Lenders use their own living-expense benchmarks (HEM), income shading and policies — results differ between lenders, which is exactly why a broker matters.
Estimated borrowing power: $419,000
That is a general estimate on standard assumptions. Every lender applies its own expense benchmarks, income shading and policy, so the real figure moves from lender to lender. Gorakh spent years as a senior credit officer deciding exactly these questions. Send him the numbers above and he will tell you what is realistic and which lenders fit — at no cost to you for home loans.
- A former senior credit officer reads itGorakh assessed loan applications on the lender side before he became a broker.
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Pin this number down before you fall for a property; it is rarely what a "five times your salary" guess produces.
How this calculator works
Lenders run a serviceability test, and this tool mirrors it.
Step 1: net income
Gross salary is converted to take-home pay using the 2026–27 resident tax brackets plus the 2% Medicare levy. Overtime, bonuses, rental income and commissions are usually counted at 80% or less.
Step 2: living expenses and debts
The lender takes the higher of your declared monthly expenses and a benchmark (HEM) for a household of your size and postcode. Credit card limits are treated as fully drawn, typically costing around 3.8% of the limit per month in assessed repayments. Car loans, personal loans and HECS repayments come straight off your surplus.
Step 3: the buffered repayment
The calculator finds the largest loan whose repayment at your rate plus 3 percentage points (the APRA buffer) fits inside that surplus over 30 years. At 6.00% p.a. the assessment rate is 9.00%, and every $1 of monthly surplus supports about $124 of borrowing.
How to use the result
Treat the figure as a ceiling, not a target. Lenders differ by tens of thousands of dollars on the same applicant, so a broker can often find more room. Add your deposit to the loan estimate, then subtract stamp duty and other upfront costs to get a realistic purchase price. Use the mortgage repayment calculator to check the actual repayment feels comfortable, not just approvable.
Worked example
Two applicants shopping in Melbourne's north (for illustration, at 6.00% p.a., assessed at 9.00%, 30-year term):
| Single applicant | Couple | |
|---|---|---|
| Gross income | $100,000 | $90,000 + $70,000 |
| Monthly net income | $6,457 | $10,647 |
| Assessed living expenses | $2,600 | $4,200 |
| Monthly surplus | $3,857 | $6,447 |
| Estimated borrowing power | about $479,000 | about $801,000 |
| Actual repayment at 6.00% | $2,872 | $4,802 |
The single applicant's actual repayment is under 45% of net pay, but the buffered test sets the limit. If the same single applicant carried a $10,000 credit card limit, borrowing power would drop by roughly $47,000; a $500-a-month car loan would cut it by around $62,000.
What this calculator doesn't include
- Lender-specific policies on bonus, overtime, casual, contract or self-employed income.
- Deposit size and LVR. A loan above 80% LVR may attract LMI and tighter approval criteria; see the LVR calculator.
- Your credit history. Defaults or a thin file can reduce the amount or the lenders available. Read the credit score guide.
- Rental income from the property you plan to buy; the investment property cashflow calculator handles that.
- Government schemes such as the First Home Guarantee, which change the deposit needed but not the serviceability test.
Tips to improve the outcome
- Close or reduce credit card limits before applying. A $10,000 limit you never use still costs about $47,000 of borrowing power.
- Pay out small personal or car loans without draining your deposit.
- Cut discretionary spending for three months before applying. Lenders read your statements.
- Add a co-borrower or consider a guarantor loan.
- Ask about lenders that accept 100% of overtime or bonus income.
- Get a formal pre-approval so you know exactly where you stand before auction day.
Frequently asked questions
How much can I borrow on a $100,000 salary?
A single applicant on $100,000 with no dependants, no other debts and moderate living expenses can typically borrow around $480,000 to $550,000 for a 30-year loan when assessed at 9.00% (6.00% plus the 3% buffer). The exact figure depends on the lender's expense benchmark, any credit cards or HECS, and how much of your income is base salary.
How much can a couple on $160,000 borrow?
A couple earning $90,000 and $70,000 with combined assessed expenses of about $4,200 a month can usually borrow close to $800,000. Two incomes help more than the sum suggests: tax is lower on two moderate salaries than one high one, and expenses do not double for a second adult.
Do lenders still use the 3% serviceability buffer in 2026?
Yes. APRA requires lenders to assess new home loans at the loan's interest rate plus at least 3 percentage points. A loan at 6.00% is tested at 9.00%, which lifts the assessed repayment on $650,000 from $3,897 to $5,230 a month. Some lenders apply a smaller buffer to refinances of an existing loan where you are not borrowing more.
Does HECS or HELP debt reduce borrowing power?
Yes. Compulsory HELP repayments are deducted from your income before the surplus is calculated. For someone on $100,000 the repayment is several thousand dollars a year, which can trim borrowing capacity by tens of thousands. If your remaining balance is small, paying it out before applying can be worth more than it costs.
Why does the bank's figure differ from this calculator?
Every lender has its own expense benchmarks, income shading rules and floor rates, so two lenders can differ by $50,000 or more for the same applicant. This tool uses a typical mid-market assessment; GNT Finance runs your details through the actual lender calculators to find the most room.
Talk to GNT Finance
Gorakh Timilsina spent years as a senior credit officer assessing applications, so he knows which lenders stretch and which don't. Get an accurate borrowing figure across dozens of lenders, in English, Nepali or Hindi, at no cost to you for our home-loan service in most cases. Book a free consultation or call 0426 403 703.
Written by Gorakh Timilsina
Founder, CEO & Senior Mortgage Consultant at GNT Finance. Gorakh started as a broker assistant, spent years as a senior credit officer assessing loan applications, and now helps Melbourne families get the right loan approved. English, Nepali and Hindi spoken.