The same applicant — same income, same deposit — can be approved for $100,000 more or less, depending on which lender assesses the file. That gap is real, and most people don’t know it exists.
The national average sits around $640,000 to $695,000 in 2026. But that figure is less useful than it sounds — because borrowing capacity isn’t just about what you earn. It’s about how each lender reads what you earn, what you owe, and how you’ve managed your finances.
If you’re buying your first home
The average borrower earns around $131,500 and gets approved in that $640K–$695K range. If you’re applying with a partner, that range extends meaningfully. If you’re self-employed, the number depends almost entirely on how your income is documented — not just how much it is.
Since October 2025, the government’s 5% deposit scheme has had no income caps and no annual place limits. For many first home buyers, the question is no longer ‘can I afford this’ but ‘which lender will assess my situation most favourably.’
If you’re an investor
Lenders will typically allow up to 80% of an investment property’s value, and they’ll count 70–80% of rental income in your assessment. Your existing equity is usually your biggest lever — the average investor refinancer holds around 43% equity. Every lender applies a 3% serviceability buffer on top of current rates, which is the single biggest factor that brings approval figures down from what people expect.
If you’re refinancing
The average refinancer has built over 50% equity, which typically means more options, not fewer. Around 63% switch lenders entirely when they refinance. The borrowing capacity question for refinancers is less about how much they can access and more about what structure makes the most sense.
The hidden things that change your number
Lenders don’t just look at your income. They look at what your income has to work against. A $10,000 credit card limit — even if you’ve never touched it — can reduce your borrowing capacity by roughly $50,000 to $80,000. Buy-now-pay-later accounts that you’ve forgotten about count too. So do subscriptions, personal loans, and HECS.
The Household Expenditure Measure is the benchmark lenders use for living costs. Even if your actual spending is lower, most lenders apply the benchmark — not your bank statements. It’s conservative by design.
Knowing the average is a starting point. Knowing your number — across multiple lenders — is what actually matters. We calculate that before you apply, not after.
This is general information only. Speak with a licensed mortgage broker for advice tailored to your circumstances. Credit criteria, fees apply. All loans are subject to lender approval.
Sources: ABS, Average Weekly Earnings Nov 2024; RBA, Serviceability Buffer Guidance 2023; MFAA Industry Intelligence Service Report 2025; HIA First Home Buyer Data 2025.
