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Australia Affordability Calculator

Find out how much home you can afford in Australia based on your income, living expenses, and the APRA stress test.

Income & Household

Combined income before taxes

$
$30,000$1,000,000

Car loans, credit card minimums, personal loans, etc.

$
$0$10,000

Deposit & Eligibility

Your available savings for a home deposit

$
$0$500,000

Mortgage Terms

%
0.5%15%
yrs
5 yrs35 yrs

Affordability Assessment

Stress Fail

HEM living expenses: $1,700 /month

Assessment rate: 8.50% (max of 5.50% + 3% or 6%)

Available for housing: $5,000 /month

Housing Cost Ratio (stress test)
50.0%/ 50% limit
APRA guidelines: your mortgage payment at the assessment rate should not exceed 50% of gross monthly income.

Your Affordability

Maximum Property Price

$750,268

Deposit: $100,000

Maximum Mortgage

$650,268

Monthly Payment (contract rate)

$3,692

At 5.50% over 30 years

Monthly Payment (stress test)

$5,000

At 8.50% assessment rate

HEM Living Expenses

$1,700

Estimated monthly household expenses

LMI (Lenders Mortgage Insurance)

$12,717

Applied when deposit < 20%

Stamp Duty

$28,174

No concessions applied

PilotRate provides educational mortgage estimates and does not constitute financial advice. Actual qualification depends on your lender's criteria.

Australia Home Affordability — Frequently Asked Questions

How much can I borrow for a home loan in Australia?
Most Australian lenders allow you to borrow approximately 5 to 6 times your annual income, depending on your living expenses, existing debts, and the lender's assessment rate. Single borrowers typically qualify for less than couples. Our calculator uses the standard lender assessment rate plus buffer to give you a realistic borrowing estimate.
What is the lender assessment rate buffer in Australia?
APRA requires lenders to assess your ability to repay at a rate at least 3% above the loan's current interest rate. For example, if your loan rate is 6%, the lender tests you at 9%. This buffer ensures you can afford your mortgage if rates rise. Our calculator applies this buffer to your borrowing power calculation.
How does my deposit size affect what I can afford in Australia?
A deposit under 20% means you'll pay Lenders Mortgage Insurance (LMI), which adds thousands to your costs and reduces borrowing power. A 20% deposit avoids LMI and unlocks better rates. First-home buyers using the First Home Guarantee may qualify with as little as 5% down without LMI.
What living expenses do Australian lenders consider?
Lenders use the Household Expenditure Measure (HEM) as a benchmark for minimum living expenses, but also consider your declared expenses. If your declared expenses exceed HEM, the higher figure is used. This factors in groceries, utilities, transport, education, healthcare, and discretionary spending. Accurate expense reporting is critical for a realistic borrowing estimate.
How does stamp duty affect affordability in Australia?
Stamp duty can add 3% to 5% to the cost of buying a home and must be paid upfront (or added to the loan in some cases). This directly reduces the amount you can put toward your deposit and affects your total borrowing power. First-home buyers may qualify for stamp duty concessions or exemptions depending on the state and property value.