It is one of the most Googled property questions in Australia, and the honest answer is a range, because deposit size, debts and lender choice all move the number. Here is the working, so you can run it for any price.
The quick maths
With a 20% deposit, an $800,000 home means a $640,000 loan. At around 6% over 30 years that is roughly $3,840 a month. Lenders stress-test at about 3% higher, closer to $5,150 a month, and want that comfortably covered after living costs and other debts. For most households that lands somewhere around a combined income of $130,000 to $150,000 before tax.
Why the range is so wide
- Deposit: with 10% down the loan is $720,000 plus LMI (unless waived), pushing the required income up. With 30% down it falls sharply.
- Debts: a $600 a month car loan or big credit card limits can add $20,000+ to the income you need.
- Dependants: each child raises the living-expense benchmark lenders apply.
- Lender choice: the same household can qualify at one lender and miss by $100,000 at another.
A rough guide for other price points
As a rule of thumb with a 20% deposit and no other debts: a $600,000 home needs roughly $100,000 to $115,000 of household income; $800,000 needs $130,000 to $150,000; $1,000,000 needs $165,000 to $190,000. Treat these as conversation starters, not verdicts.
The borrowing capacity calculator turns your actual income and expenses into an estimate in under a minute.
Open the borrowing capacity calculator →The real answer is lender-specific
Every figure above shifts with policy: which lender counts your overtime, how they treat your HECS, what buffer they apply. A free call with Nathan replaces the rule of thumb with your actual number across 50+ lenders.