Borrowing capacity depends on your income, nature of employment, a tax-free component on your salary, existing loan commitments (such as car loan, personal loan, credit cards, etc). The capacity also depends on your living expenses such as food and grocery, childcare and education, travel, transport, entertainment, medical, etc. Lenders need to be satisfied that the declared living expenses are in line with the general Australian standard for the family size and income level that you have.

Above variables make the things complicated and trying to know borrowing capacity online without having proper information about above income and expenses is simply not possible.

A general rule of thumb we can suggest is you can borrow up to 5.5 times of your gross income, assuming that you have no other liabilities and no dependent children. For example, if your household combined income is $110k per year, you can expect to borrow up to $605,000. You can then add the deposit you have to calculate how much property price you can look up to.

We highly recommend to contact one of our brokers and discuss your personal circumstances to get an idea about the reliable estimate of your borrowing capacity.

In all the above scenarios, please note that you also need to bring extra money for stamp duty expenses and other closing costs (such as the legal, council, etc), which is another 5% of the property purchase price. Sometimes, you may be eligible for stamp duty concession or even exemption so these costs may vary accordingly. Please contact us to discuss your circumstances.