To borrow $400,000, a single applicant with no other debts needs about $96,000 a year, and a couple about $107,000 combined. That is at the 6% example rate, assessed at 9% over 30 years. The repayments are about $2,398 a month. Children, a car loan or a HECS debt raise the income needed.

Income needed for a $400,000 loan, by household
Household Income needed Why it differs
Single, no debts, no children About $96,000 Single living benchmark
Couple, no debts, no children About $107,000 combined Higher living costs, two tax-free thresholds
Couple, two children About $125,000 combined Dependant allowance added to living costs
Single with a $500 a month car loan About $107,000 Commitment deducted before the surplus is measured

Why does a couple need more income than a single applicant?

Because lenders allow more for a two-person household’s living costs, and at this loan size that outweighs the tax saving of two incomes. At larger loans the tax effect wins and the order reverses. See income needed for a $1.2m home loan.

Can I borrow $400,000 on $80,000?

Not quite on our assumptions: a single applicant on $80,000 with no debts reaches about $316,000. Overtime or allowances that a lender counts, a partner’s income or a longer history in the job can close the gap. See how much can I borrow on $80k.

What does a $400,000 loan buy in NSW?

With a 5% deposit under the 5% Deposit Scheme, about $421,000. With 20%, $500,000. An eligible first home buyer pays no transfer duty up to $800,000, and a new home up to $600,000 can also attract the $10,000 First Home Owner Grant. That makes $400,000 a common loan for regional NSW and for apartments in parts of Western Sydney.

How does HECS change the figure?

The compulsory repayment counts as a commitment. In 2026-27 nothing is due on income up to $69,528, so below that HECS does not reduce borrowing. Above it, each dollar of income over the threshold adds 15 cents of repayment. The HECS and home loans page shows the effect.

How do debts change the income needed for a $400,000 loan?

Every monthly commitment comes off what the lender thinks you can repay. A card limit counts as if it were used, at 3.8% of the limit a month. An unused $10,000 card adds about $9,000 to the income a single applicant needs.

Single income needed for $400,000, with and without debts
Situation Income needed
No other debts $96,000
A $10,000 credit card limit $104,000
A car loan of $500 a month $107,000
Both $116,000

What if your income is below the figure?

  • Clear unused card limits first: a $10,000 limit closed is worth about $9,000 of income.
  • Add a second applicant: a couple needs about $107,000 combined.
  • Borrow less: each $50,000 less on the loan lowers the single income needed by about $9,000.
  • A family guarantee covers the deposit, but your income still has to carry the loan.
  • On about $100,000 a year, see how much you can borrow on $100,000.

What price and deposit go with a $400,000 loan?

The same loan buys a dearer home with a bigger deposit, and the duty grows with the price.

Price and duty behind a $400,000 loan
Deposit Price Duty, most buyers Duty, eligible first home buyer
5% ($21,000) $421,000 $13,134 $0
20% ($100,000) $500,000 $16,687 $0

What are the repayments on a $400,000 loan?

  • At 6% over 30 years: $2,398 a month, or about $1,107 a fortnight.
  • At 6% over 25 years: $2,577 a month.
  • At the 9% rate lenders test: $3,218 a month, the figure your budget is checked against.

Does a shorter loan term change the income needed?

Yes. Over 25 years instead of 30 the repayments are higher, so a single applicant needs about $99,000 rather than $96,000 for the same $400,000, and the repayment rises to $2,577 a month at 6%.

What else does a lender check besides income for a $400,000 loan?

  • Your deposit and where it came from; see genuine savings.
  • Your credit file, including repayment history.
  • Living costs, as the higher of what you declare and a benchmark.
  • Whether the property suits the lender: some limit loans on units under 50 square metres; see small apartment home loans.

Nearby loan sizes: the income needed for a $500k home loan. The borrowing power calculator starts from your own income instead.

Questions people ask

What salary do I need for a $400,000 home loan?

About $96,000 as a single applicant with no debts, or $107,000 combined as a couple, on our assumptions.

What are the repayments on $400,000?

About $2,398 a month at 6% over 30 years. See repayments on a $400k home loan.

Can two people on $55,000 each borrow $400,000?

On our assumptions $110,000 combined reaches about $415,000 with no debts or children, so yes, just.

Does the 5% Deposit Scheme have an income limit?

No. Since 1 October 2025 there are no income caps. The price cap and first home buyer rules still apply.

Charles Touma checks which lender counts your income most fully, so the $400,000 figure is tested against real policies. A free 30-minute call covers your income and borrowing. General information only, not credit advice. Lender policies change, and your own circumstances decide what suits you.

Sources: APRA, serviceability buffer; Housing Australia, 5% Deposit Scheme; Revenue NSW, First Home Owner (New Homes) Grant; ATO, study loan repayment thresholds 2026-27, checked 27 October 2026.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.