Borrowing Power · May 2026
How Much Can I Borrow on a $100,000 Salary? (2026 Guide)
It's one of the most common questions a mortgage broker hears — "I earn $100,000, how much can I borrow?" The honest answer: it depends on your expenses, debts, deposit, and which lender you use. This guide walks through the actual calculations so you know what to expect before you start your property search.
How Lenders Calculate Borrowing Capacity
Australian lenders use a metric called Net Surplus Ratio (NSR) or a serviceability buffer to determine how much you can borrow. The key concept: they assess your loan repayments at a test rate — usually the actual rate plus 3.00% (per APRA guidance). At a variable rate of 6.0%, lenders test your ability to repay at approximately 9.0%.
They then subtract your living expenses (assessed against a Household Expenditure Measure benchmark), existing liability repayments, and other deductions from your net income to determine how much you can service.
Single Income $100,000: Typical Borrowing Range
Single applicant, $100k base salary, no dependants, no existing debts
Conservative lenders (HEM-based): ~$480,000 – $520,000
Mid-range lenders: ~$530,000 – $580,000
Higher-multiplier lenders: ~$590,000 – $640,000
The lender gap is significant — across 70+ lenders, borrowing capacity for the same client can vary by $100,000–$150,000. This is why using a broker to identify the right lender for your situation is more valuable than going directly to your bank.
Dual Income Scenarios
Two applicants, combined $200k, no dependants, no debts
Conservative range: ~$850,000 – $950,000
Higher-multiplier lenders: ~$1,000,000 – $1,150,000
What Reduces Your Borrowing Capacity?
Each of these materially reduces how much you can borrow:
HECS-HELP debt: A $50,000 HECS liability with a salary of $100k means a repayment of ~$5,000/year, which can reduce borrowing capacity by $40,000–$60,000.
Credit card limits: Lenders assess credit cards at 3.8% of the limit (not the balance). A $20,000 limit costs you ~$760/month in their serviceability calculation, reducing capacity by ~$80,000–$100,000.
Car loan / personal loans: Existing repayments are assessed at face value. A $600/month car payment can reduce borrowing capacity by $60,000–$80,000.
Dependants: Each dependent child typically reduces borrowing capacity by $20,000–$40,000 across most lender models.
How to Maximise Your Borrowing Capacity
1. Close unused credit cards — even if the balance is zero, the limit counts against you. Cancel cards you don't need 3+ months before applying.
2. Include all income — overtime, bonuses, rental income, and allowances all count at various assessment rates. A broker will help you include every legitimate income source correctly.
3. Choose the right lender — not all lenders calculate expenses the same way. Some are more generous with declared living expenses vs HEM benchmarks. Bridge Finance runs your numbers across multiple lenders to find your optimal match.
4. Increase your deposit — a larger deposit doesn't increase serviceability but does improve LVR, giving access to better rates and more lenders.
The fastest way to know your exact number: book a free 30-minute session with William. He'll run your specific scenario across the best lenders and give you a real borrowing capacity figure — not a ballpark estimate from an online calculator.
About the Author
William Zhu
Director, Bridge Finance. 8 years of mortgage broking + 5 years in construction. $600M+ settled. Access to 70+ lenders. MFAA member.
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© 2026 Bridge.Finance Pty Ltd ATF Zhu Family Trust. Credit Representative 567817 of Australian Credit Licence 384704. MFAA Member. AFCA Member.
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