Last updated: July 2026 · Reviewed by John Pierre Saliba, Director and Mortgage Broker, MFAA Accredited
Borrowing Power on $100,000 Per Year
On a $100,000 salary, you can typically borrow approximately $550,000 to $600,000 for a home loan in Australia. This varies by lender, debts, expenses, and dependants. Lend & Loan compares 50+ lenders for free. Call 02 8046 3933.
Estimates only. Actual borrowing power varies by lender, expenses, debts, and personal circumstances.
On a $100,000 gross salary with no dependants and minimal debts, most Australian lenders will approve a home loan between $550,000 and $600,000. This is based on a general rule of 5.5 to 6 times gross income, adjusted for the lender's serviceability buffer (currently 3% above the loan rate).
The exact figure depends on your situation. A borrower with a $10,000 car loan and a $5,000 credit card limit will borrow less than someone with no debts at all. Lender choice also matters. Some lenders use higher expense benchmarks (HEM vs actual expenses), and the difference can mean $30,000 to $50,000 in borrowing power.
$DISCLAIMERAt $100K income, lender selection makes a real difference. I've seen borrowing power vary by $80,000 between two lenders for the same borrower. That is why comparing across 50+ lenders matters. It is free and takes about 20 minutes to get a clear picture.
What Affects Your Borrowing Power?
Existing debts
Credit cards, car loans, HECS/HELP, personal loans, and buy-now-pay-later accounts all reduce borrowing power. Even an unused credit card with a $10,000 limit can reduce your capacity by $30,000 to $50,000, because lenders assess the full limit as a potential liability.
Number of dependants
Each dependant reduces borrowing power by approximately $30,000 to $60,000, depending on the lender. A single borrower on $100K with two children will borrow significantly less than a single borrower with none.
Living expenses
Lenders use either your declared expenses or the Household Expenditure Measure (HEM), whichever is higher. High discretionary spending (subscriptions, dining, travel) can reduce your capacity if declared expenses exceed HEM.
Lender choice
Different lenders use different serviceability models. Some are more conservative, others more generous. A broker comparing 50+ lenders can find the one that gives you the strongest result for your circumstances.
What Can You Buy on $550K to $600K?
With borrowing power of $550,000 to $600,000, plus a 20% deposit, your total purchase price sits around $690,000 to $750,000. Here are areas where that budget can work.
Western Sydney suburbs like Penrith and Campbelltown offer houses in the $650K to $750K range. The Central Coast and Newcastle provide even more choice, with houses from $600K. Brisbane outer suburbs remain affordable with strong growth potential ahead of the 2032 Olympics.
Single vs Couple on $100K
| Scenario | Borrowing Power | Monthly Repayment |
|---|---|---|
| Single, $100K, no debts | $550K - $600K | ~$3,350/mo |
| Single, $100K, $10K car loan | $500K - $550K | ~$3,050/mo |
| Couple, $100K combined, no debts | $520K - $570K | ~$3,170/mo |
| Couple, $100K combined, 1 child | $460K - $510K | ~$2,800/mo |
Estimates only. Actual borrowing power varies by lender, credit history, and individual circumstances. Rates and calculations as at June 2026.
How to Maximise Your Borrowing Power
- Close unused credit cards. Even a $0 balance card reduces capacity.
- Pay down personal loans and car finance before applying.
- Reduce buy-now-pay-later balances (Afterpay, Zip) to zero.
- Minimise declared living expenses by cutting subscriptions and discretionary spending 3 months before applying.
- Use a mortgage broker to compare 50+ lenders and find the one that assesses your income most favourably.
Get a personalised estimate with our borrowing power calculator. For a precise figure across 50+ lenders, call John on 02 8046 3933 or book a free consultation.
