“The number a lender approves and the number that makes sense to borrow are two different questions. Understanding both is what matters.” [cite: 619]
As a general guide for a gross salary of $110,000, with no existing debts, no credit card limits, and a 30-year loan term, borrowing capacity in 2026 typically falls in the range of approximately $435,000 to $580,000. [cite: 620] This is an estimate only. Individual outcomes depend on living expenses, existing liabilities, the specific lender, and how different income types are assessed. [cite: 621]
Why the range is wide
The same salary produces materially different borrowing capacity outcomes at different lenders. [cite: 623] Variation comes from how each institution applies the HEM benchmark for living expenses, whether they include HECS and HELP repayments fully or partially, how they shade overtime or bonus income, and how they treat credit card limits as monthly liabilities. [cite: 624]
Key assumptions behind the estimate
The estimate above assumes a single applicant with no existing loan repayments, no credit card limits, no HECS debt, living expenses at the HEM benchmark, the APRA 3% serviceability buffer applied at current variable rates, and a 30-year principal and interest loan. [cite: 626] Each variation from these assumptions shifts the number positively or negatively. [cite: 627]
What changes the number most
- A $15,000 credit card limit reduces capacity by approximately $35,000 to $50,000. [cite: 629]
- HECS debt of $50,000 on a $100,000 income reduces capacity by an estimated $40,000 to $55,000. [cite: 630]
- A $500 per month car loan reduces capacity by $50,000 to $80,000. [cite: 631]
- Adding a partner’s income can significantly increase combined capacity, particularly where the second income is stable and PAYG. [cite: 632]
You may consider seeking independent advice from a licensed mortgage broker or financial professional to assess your personal circumstances. [cite: 633] This information is general in nature and does not take into account your objectives, financial situation or needs. [cite: 634] These are estimates only based on simplified assumptions. Actual borrowing capacity is determined by the individual lender through a full credit assessment. [cite: 635] Speak with a licensed mortgage broker for an accurate assessment across multiple lenders. All loans are subject to lender approval. [cite: 636]
Sources: CalculatorMate, How Much Can I Borrow 2026; ALIC, Understanding Borrowing Power 2026; WealthWorks, Borrowing Power Calculator 2026; [cite: 637] APRA CPG 223 Serviceability Buffer; Canstar, Average Full-Time Wage Borrowing Estimate 2026. [cite: 638]
