How much can we borrow on two incomes?
Two incomes, paying rent, and wondering what a bank would actually lend you? Put both your numbers in below. It takes about 2 minutes, and it shows its working.
By Jacob Williams · Updated
- first home buyers settled
- 156first home buyers settled
- median starting deposit
- $52kmedian starting deposit
- bought in Werribee
- 67bought in Werribee
Who's buying
Children or others who rely on your income.
Your income
Before tax, excluding super.
Overtime, bonuses or rent. Lenders count only part of this.
Your partner's income
Before tax, excluding super.
Overtime, bonuses or rent. Lenders count only part of this.
What you spend
Groceries, transport, bills, insurance, entertainment — everything except rent and debt repayments.
Existing debts
The limits, not the balances. Lenders assess these as if fully drawn.
The loan
You'll be assessed at this plus the 3% buffer.
You could borrow around
$890,000
Estimate only
Somewhere between $800,000 and $890,000 depending on the lender. Assessed at 9.25%.
How we got there
Take-home income
After tax, Medicare and any HECS repayment
$10,647 / month
Living expenses
As you entered
− $3,300
Existing commitments
Cards, car and personal loans, BNPL
− $0
Left over each month
$7,347
Repayment at your actual rate
6.25% over 30 years
$5,480 / month
Repayment at the assessed rate
9.25% — what the lender tests
$7,322 / month
Debt-to-income ratio
Lenders look harder above 6
5.6
What this calculation assumes
- Tested at 9.25% — your 6.25% rate plus the 3% buffer lenders are required to add.
- Principal and interest over 30 years.
- Living expenses of 3300 a month.
- Credit card limits assessed at 3.8% of the limit per month.
- No HECS/HELP debt included.
- Tax estimated on current resident rates plus the Medicare levy. No offsets, salary sacrifice or private health rebate.
This is a general estimate, not a loan offer. Lenders assess two incomes differently, so your real number can be higher or lower.
Create a free account to save this and come back to it.
What lenders look at when there are two of you
Lenders add your incomes together, then take away what they think it costs you to live, plus any debts either of you has. What's left decides the loan. So a car loan, a credit card limit or Afterpay on either name comes off the total, even if you never use it.
Why couples often borrow less than they expect (and how to fix it)
The three things I see shrink a couple's number most: credit card limits you don't need, a car loan on one of you, and HECS. Cutting a card limit before you apply can lift your borrowing straight away. HECS counts differently from lender to lender, which is one reason two banks can give you two very different answers.
Casual, part-time or on contract?
Lots of the couples I help have one steady income and one that moves around. Most lenders want to see some history first, but each one treats it differently. If one of you is casual or recently changed jobs, put it in the calculator honestly and then check with me. That's usually where the biggest difference between lenders shows up.
Your number is only half the picture
What you can borrow and what you can buy aren't the same thing. With the 5% deposit scheme, a couple can buy with 5% down and no lenders mortgage insurance, and Victorian first home buyers pay no stamp duty up to $600,000. So the deposit you've already saved may go a lot further than you think.
Of the 156 first home buyers I've helped settle, 81% were couples, and the median deposit when they started was $52k.