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To afford a $900,000 (900k) house, a household needs a modelled indicative income of about $242,166 a year with a 20% deposit — one earner on that, or two earners on about $121,083 each — under a 9.5% assessment rate, a 30-year loan, and no other debts or dependants. This is not a lending decision — see the assumptions and a smaller-deposit comparison below.
Figures are modelled indicative estimates, not a pre-approval or a lending decision. They assume a 6.5% interest rate with a 3% serviceability buffer (9.5% assessment rate), a 30-year loan term, $4,000 a month in living expenses, no existing debts and no dependants. Every lender's actual serviceability calculator differs from this model.
A smaller deposit means a bigger loan and a bigger modelled repayment to service, which raises the modelled income figure. Deposits under 20% typically also require Lenders Mortgage Insurance (LMI), an added cost not reflected in these repayment figures.
| Deposit | Loan size | Monthly repayment | Modelled household income | Each, if two earners split it evenly |
|---|---|---|---|---|
| 20%$180,000 | $720,000 | $4,551 | $242,166/yr | $121,083/yr |
| 10%$90,000 · LMI likely applies | $810,000 | $5,120 | $272,437/yr | $136,219/yr |
| 5%$45,000 · LMI likely applies | $855,000 | $5,404 | $287,572/yr | $143,786/yr |
The modelled requirement is about $242,166 a year either way — one earner on that figure, or two earners on about $121,083 each, split however the two incomes actually fall rather than exactly in half.
A second income does not lower the bar, and that surprises people. The binding assumption here is that repayments stay under 30% of gross household income, and a share of household income does not care how many payslips it arrives on. Household income is what a lender assesses.
What a couple genuinely changes is the other side of the assessment: two people bring two sets of living expenses and two sets of existing debts. Two modest incomes with a car loan each do not always outperform one larger income with none.
Stamp duty is due at settlement, on top of your deposit, and is not part of the modelled income figures above. Indicative figures for a non-first-home-buyer:
| State | Indicative stamp duty |
|---|---|
| NSW | $34,687 |
| VIC | $49,070 |
| QLD | $26,350 |
First home buyers may qualify for a concession or full exemption depending on the state and price threshold. Check your state and eligibility.
Enter your actual income, expenses and debts to see your modelled maximum borrowing power.
Under the assumptions modelled on this page — a 6.5% interest rate with a 3% serviceability buffer (a 9.5% assessment rate), a 30-year loan, $4,000 a month in living expenses, no other debts and no dependants — a household would need a modelled indicative income of about $242,166 a year with a 20% deposit, rising to about $272,437 with a 10% deposit and about $287,572 with a 5% deposit. This is a modelled figure, not a lending decision — every lender assesses income, debts and expenses differently.
The same household income as a single applicant: about $242,166 a year at a 20% deposit, or roughly $121,083 each if two earners split it evenly. A second income does not halve the requirement, because the binding assumption on this page is that repayments stay under 30% of gross household income — a share, which does not care how many payslips the income arrives on. What a couple really changes is the other side of the assessment: two people bring two sets of living expenses and two sets of existing debts, so two modest incomes do not always outperform one larger income with none.
No. These are modelled indicative figures based on simplified assumptions, not a pre-approval, a quote or a lending decision. Real lenders assess your actual income type, existing debts, credit history, dependants, living expenses and their own risk appetite, and every lender's serviceability calculator is different. Treat this as a starting point for a conversation with a lender or broker, not an answer.
A 20% deposit on $900,000 is $180,000, which avoids Lenders Mortgage Insurance (LMI). A 10% deposit is $90,000 and a 5% deposit is $45,000 — both usually require LMI, an insurance premium that protects the lender (not you) and is typically added to the loan. A smaller deposit means a bigger loan and a higher modelled income requirement.
At the modelled 6.5% interest rate over 30 years, the indicative monthly repayment is about $4,551 with a 20% deposit, $5,120 with a 10% deposit, and $5,404 with a 5% deposit. These are principal-and-interest repayments at the actual rate, not the higher buffered rate lenders use to assess serviceability.
Indicative stamp duty on $900,000 is about $34,687 in NSW, $49,070 in VIC and $26,350 in QLD, for a non-first-home-buyer. Stamp duty is due at settlement on top of the deposit, so it needs to be budgeted for separately from the income required to service the loan. First home buyers may qualify for a concession or exemption depending on the state and price.
Because a smaller deposit means a bigger loan, and a bigger loan needs a bigger repayment to pay off over the same 30-year term — which needs more income to service under a lender's buffer and expense assumptions. Saving a larger deposit is the single biggest lever most buyers have over the income they need to show a lender.
Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.