To borrow $500,000, a single applicant with no other debts needs an income of about $114,000, and a couple about $126,000 combined, on our assumptions at the 6% example rate assessed at 9% over 30 years. Children, a car loan or HECS raise the figure. The repayments are about $2,998 a month at 6%.

Income needed for a $500,000 loan, by household
Household Income needed Why it differs
Single, no debts, no children About $114,000 Single living benchmark
Couple, no debts, no children About $126,000 combined Two incomes taxed separately, higher living costs
Couple, two children About $143,000 combined Dependant allowance added to living costs
Single with a $500 a month car loan About $126,000 Commitment deducted before surplus is measured

Why does the lender test you on more than you will pay?

Banks assess repayments at the rate plus a 3 percentage point buffer, so the 9% test on $500,000 is about $4,023 a month even though the 6% repayment is about $2,998. The buffer covers future rate rises; see the serviceability buffer.

What does $500,000 buy?

With a 5% deposit through the 5% Deposit Scheme, a $500,000 loan buys about $526,000; with a 20% deposit, about $625,000. For the deposit side, see how much deposit for a $500k house; for a smaller loan, income needed for a $400k home loan.

Which income counts?

How does HECS change the figure?

Lenders deduct the compulsory HECS repayment from the income they count, so a graduate needs more income for the same loan. The HECS and home loans page shows the effect.

Questions people ask

What salary do you need for a $500,000 loan?

About $114,000 as a single applicant with no debts, or $126,000 combined as a couple, on our assumptions.

Can I borrow $500,000 on $100,000?

On our assumptions a single applicant on $100,000 with no debts reaches about $424,000, so close but short; a lender that counts more of your income, or a partner’s income, could close the gap.

Can a couple on $63,000 each borrow $500,000?

On our assumptions, about $126,000 combined reaches $500,000 with no other debts, so $63,000 each is right at the edge; children or a car loan would push it below. A lender that counts overtime or allowances could make the difference.

What deposit goes with a $500,000 loan?

$26,300 with the 5% Deposit Scheme on a $526,300 purchase, or $125,000 for 20% on $625,000, plus purchase costs; the deposit calculator works it out.

How much are repayments on a $500,000 loan?

About $2,998 a month at 6% over 30 years; see repayments on a $500k home loan.

Charles Touma checks which lender counts your income most fully, so the $500,000 figure is tested against real policies, not one calculator. 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: Moneysmart, home loans; APRA, serviceability buffer, checked 20 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.