On a combined household income of $150,000, most Australian lenders will offer somewhere between $590,000 and $688,000. This is one of the most common borrowing scenarios in Australia — couples on mid-range incomes working toward their first or second home. The estimate below assumes no existing debts and no HECS.
A combined $150,000 — for example $80,000 and $70,000 — opens up solid options across most Australian cities. In Brisbane, Adelaide and Perth you can access quality houses in good suburbs. In Sydney and Melbourne this puts you in middle-ring territory, particularly in areas with strong infrastructure and future growth.
Australian banks don't simply multiply your salary by a fixed number. They run a serviceability assessment that works like this:
First, they calculate your net income after tax and Medicare levy. Then they subtract your committed monthly expenses — either your declared living costs or the HEM (Household Expenditure Measure) benchmark, whichever is higher. They also subtract minimum repayments on any existing debts, credit card limits (assessed at roughly 3.8% per month regardless of your balance), and HECS-HELP repayments.
Whatever's left is what's available for a mortgage repayment. They then work backwards from that repayment amount — using your actual interest rate plus a mandatory 3% buffer — to arrive at the maximum loan they'll approve.
This is why two people on identical salaries can have very different borrowing power. A $20,000 credit card limit, two children, and a $30,000 HECS debt can reduce capacity by $150,000 or more.
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Calculate my borrowing power →On $150,000 combined combined income you could typically borrow between $590,000 and $688,000, with a midpoint of around $656,000. This assumes no existing debts, no HECS, and typical living expenses. Use the calculator above to adjust for your specific situation.
Monthly repayments on a $656,000 loan at 6.5% over 30 years would be approximately $4,015 per month. Repayments are lower in the early years as more of each payment goes to interest, shifting toward principal over time.
Yes — significantly. On $150,000 combined, having a HECS debt reduces your borrowing power by approximately $77,000. Banks treat the compulsory annual repayment as a committed expense, reducing what's available for mortgage repayments.
To avoid Lenders Mortgage Insurance (LMI) you need a 20% deposit — approximately $164,000 on a $656,000 loan. You can borrow with less, but LMI costs will apply and typically add $5,000–$20,000 to your upfront costs depending on your LVR.
A clean credit history won't increase your maximum borrowing capacity — serviceability calculations are the binding constraint. However a poor credit history can reduce your capacity or result in declined applications. Lenders assess credit as a separate check on top of serviceability.