How much can a first home buyer borrow?
Last updated September 2026 · Back to the calculator
There is no single number. Every lender works out your maximum loan from the same few inputs, then applies its own rules. That is why two lenders can give the same person results tens of thousands of dollars apart. Here is what actually moves the number.
1. Your income, after tax
Lenders start from your reliable income. Base salary counts in full. Bonuses, overtime, commission and rental income are usually shaded, and some lenders count them at a lower percentage or ignore them until you have a track record. Applying as a couple combines both incomes but also both sets of debts and expenses.
2. Your living expenses
Lenders use the higher of what you declare and their own benchmark for a household like yours. Cutting your declared spending on the form does not raise the result if it falls below the benchmark. Dependants raise the benchmark and lower your capacity.
3. Existing debts and credit limits
Car loans, personal loans, HECS/HELP and buy-now-pay-later all reduce what you can borrow. Credit card limits count even when the balance is zero, because lenders assume the limit could be used. Closing or lowering unused cards before you apply can help.
4. The rate lenders test you at
Lenders do not test you at the rate you will actually pay. They add a buffer (APRA expects at least 3 percentage points above the loan rate), so a loan you can comfortably afford today still has to pass at a much higher repayment.
5. Your deposit
A bigger deposit (see deposit size, LMI and borrowing power) does not raise your serviceability by itself, but it lowers the loan you need and can avoid Lenders Mortgage Insurance. Schemes such as the 5% Deposit Scheme let you buy with a smaller deposit, but the lender still tests the larger loan against your income. Help to Buy is different: the government owns part of the home, so the loan itself is smaller.
6. The lender you choose
Assessment rates, expense benchmarks, income shading and HECS treatment all differ by lender. Comparing several is the fastest way to see whether your result is limited by your finances or just by one lender's policy.
How to get a realistic number
- Use our checklist to gather your last payslips, your card limits, any loan balances and your typical monthly spending.
- Run an indicative estimate across several lenders (our calculator does this in about 60 seconds).
- Lower unused card limits and clear small debts if the number is close to your target.
- Talk to a mortgage broker for a formal pre-approval before you bid.
How a broker helps, at no cost to you
- Finds the right lender. Compares lenders across their panel to find which will lend you the most, including those taking part in the 5% Deposit Scheme and Help to Buy.
- Handles the scheme. Checks your eligibility and the price cap, and applies for your scheme place through the lender.
- Gets you ready to bid. Sorts the paperwork and a pre-approval before you make an offer.
Who pays? Most mortgage brokers charge you nothing. The lender you choose pays the broker a commission when your loan settles. By law a broker must act in your best interests, not the lender's. We may receive a referral fee from the broker; it does not change what you pay.
This page is general information only, not credit advice or a recommendation. Estimates are indicative and lender policies change; a licensed broker or lender can confirm what you can actually borrow.