How Much Can You Borrow on a $70k, $90k or $120k Salary in Australia?

One of the first questions every home buyer asks is, “How much can I borrow?” While your salary plays a major role, lenders consider much more than your annual income before approving a home loan.

Whether you earn $70,000, $90,000 or $120,000 per year, understanding your borrowing capacity can help you set a realistic budget and avoid disappointment when searching for your first home.

This guide explains how Australian lenders calculate borrowing power, what loan amounts you may qualify for, and how to improve your chances of securing a larger mortgage. 

New to buying property? Read our The Complete Guide to Buying Your First Home in Australia for a step-by-step overview of the entire home buying process.

What Determines How Much You Can Borrow?

Your annual salary is only one part of the equation. Every lender assesses multiple financial factors before deciding how much they’re willing to lend. 

These include: 

• Your annual income 

• Employment type and job stability 

• Existing debts (credit cards, car loans, personal loans) 

• Living expenses 

• Number of dependants 

• Credit history 

• Savings and deposit size 

• Interest rate buffer used by the lender 

Most Australian lenders also test whether you could still afford repayments if interest rates increased by several percentage points. Understanding home loan serviceability requirements can help you understand how lenders assess your ability to meet repayments. 

How Much Can You Borrow on a $70k Salary? 

A person earning $70,000 per year may typically borrow approximately: 

Estimated borrowing range: $320,000–$450,000 

The actual figure depends on: 

• Whether you’re single or buying with a partner 

• Existing financial commitments 

• Deposit amount 

• Current interest rates 

• Individual lender policies 

For many first-home buyers, this borrowing range may suit apartments, townhouses or more affordable homes depending on the location. 

How Much Can You Borrow on a $90k Salary? 

Someone earning $90,000 annually could generally borrow around:

Estimated borrowing range: $450,000–$650,000 

With a larger income, buyers often have greater flexibility and may qualify for: 

• Higher loan limits 

• Better loan products 

• More competitive interest rates 

• Greater purchasing power 

Again, your borrowing capacity depends heavily on your expenses and existing debts. 

How Much Can You Borrow on a $120k Salary?

If you earn $120,000 per year, your borrowing capacity could increase significantly.

Estimated borrowing range: $650,000–$900,000+ 

Many buyers in this income bracket may qualify for larger loans, provided they maintain manageable living expenses and have a strong credit profile. 

However, lenders will still assess affordability carefully rather than approving loans based on income alone. 

What If You’re Buying with a Partner?

Joint applications generally increase borrowing power because lenders assess both incomes together. 

For example: 

• Two applicants earning $70k each

• One earning $90k and another earning $70k

• One earning $120k with a secondary income

Combined income can significantly improve borrowing capacity, although lenders will also consider both applicants’ financial obligations. 

Why Your Deposit Matters 

Your deposit affects more than just how much you need to borrow. 

A larger deposit may: 

• Reduce your monthly repayments 

• Lower your loan-to-value ratio (LVR) 

• Help you avoid Lenders Mortgage Insurance (LMI) 

• Improve your chances of loan approval 

Many first-home buyers aim for a 20% deposit, but there are options available with smaller deposits. 

For more information, see our guide on How Much Deposit Do You Need to Buy Your First Home? 

Expenses Can Reduce Your Borrowing Power 

Many buyers are surprised to learn that lifestyle spending has a significant impact on borrowing capacity. 

Lenders assess regular expenses including: 

• Childcare 

• Groceries 

• Utilities 

• Entertainment 

• Insurance 

• School fees 

• Subscriptions 

• Credit card limits 

Even unused credit cards can reduce your borrowing capacity because lenders assume they could be used at any time. 

Existing Debts Also Matter 

Before approving a mortgage, lenders review all existing financial commitments. 

These may include: 

• Car loans 

• HECS/HELP debt 

• Personal loans 

• Buy Now Pay Later services 

• Credit cards 

• Investment loans 

Reducing or paying off existing debt before applying may improve your borrowing capacity. 

Can You Increase Your Borrowing Power? 

Yes. There are several ways to improve your borrowing capacity before applying for a home loan. 

Some strategies include: 

• Paying down existing debt 

• Closing unused credit cards 

• Increasing your savings 

• Reducing discretionary spending 

• Improving your credit score 

• Waiting until you’ve been employed longer 

• Applying jointly with a partner 

• Speaking with a mortgage broker who compares multiple lenders 

Even relatively small financial improvements can increase the amount some lenders are willing to offer. 

Use a Borrowing Capacity Calculator 

Online borrowing power calculators provide useful estimates based on your: 

• Income 

• Expenses 

• Deposit 

• Existing debts 

Remember, these are estimates only. 

Every lender uses its own lending criteria, so your approved loan amount may differ from calculator results. 

Government Assistance Can Improve Affordability

Eligible first-home buyers may also benefit from government assistance, including: 

• First Home Owner Grants 

• Stamp duty concessions 

• First Home Guarantee Scheme 

• Shared equity programs (in some states) 

These initiatives may reduce the amount you need to save or help you enter the property market sooner.

Final Thoughts 

Knowing how much you can borrow on a $70k, $90k or $120k salary is one of the most important first steps when purchasing a home in Australia. While salary provides a useful starting point, lenders also consider your expenses, debts, savings, employment history and overall financial health.

Rather than focusing solely on the maximum amount a lender may approve, consider what repayments comfortably fit your lifestyle and long-term financial goals.

For a complete roadmap—from saving your deposit to settlement—read our The Complete Guide to Buying Your First Home in Australia.