“With a clean financial profile, a $100,000 salary typically supports a loan in the range of $480,000 to $600,000.”
$100,000 is a common benchmark for first home buyer modelling — but it’s important to understand that the number you get approved for is not fixed. It shifts based on your debt profile, the lender, and the structure you use.
The baseline calculation
On $100,000 gross with no dependants, no debt, and no existing commitments, most lenders will approve loans in the range of $480,000–$590,000. The primary variable is the living expense benchmark each lender applies — some use the Household Expenditure Measure (HEM) at base rate; others apply a more conservative internal benchmark.
The HECS-HELP factor
At $100,000 income, compulsory HECS-HELP repayments run approximately $5,800 per year. Most lenders treat this as a deduction from gross income in their serviceability model, not just a lifestyle expense. Borrowers with $40,000–$60,000 in HECS debt can expect borrowing capacity to be reduced by $30,000–$50,000 compared to a borrower with the same salary and no HECS.
Rate rises and the $100,000 borrower
Three RBA rate rises in 2026 have reduced the maximum borrowing capacity at $100,000 by approximately $40,000–$60,000 compared to 2022. The serviceability buffer means every 0.25% cash rate increase reduces capacity by roughly $10,000–$15,000 at this income level.
The practical question to answer
The relevant question isn’t just how much you can borrow — it’s whether what you can borrow reaches the property type you need in the suburb you’re targeting. If borrowing capacity falls short of that target, understanding the gap gives you time to adjust — through savings, debt reduction, a different market, or a different entry strategy.
→ You may wish to speak with a licensed mortgage broker to assess your personal circumstances. This is general information only. Individual circumstances vary and scheme details change regularly. Verify current eligibility, caps, and terms with official sources before making decisions. Speak with a licensed mortgage broker for advice tailored to your situation. All loans are subject to lender approval.
Sources: APRA, Letter to ADIs — Mortgage Serviceability, October 2021; ATO, HECS-HELP Repayment Thresholds 2025–26 (ato.gov.au); ASIC MoneySmart, Borrowing Power Calculator.
