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Income required — what you need to earn to buy that house
Pick a property price and deposit. We'll work backwards through APRA stress-rate buffers, HEM expense floors, and DSR caps to estimate the household income a major lender would want to see.
Excluding stamp duty and other fees
Children or others you financially support
Credit card minimums, car loans, BNPL, HECS-HELP
Gross income required
$236,296
Annual, before tax
Loan needed
$640,000
LVR 80.0%
Monthly repayment (at displayed rate)
$3,670
Monthly repayment (stress-tested +3%)
$4,962
What APRA requires lenders to assess against
• Stress-tested at 8.59% (APRA 3% buffer).
Why the number is so high
APRA requires lenders to assess your serviceability not at the advertised rate, but at that rate plus 3% — the stress buffer designed to ensure you can still pay if rates rise.
On top of that, lenders apply the Household Expenditure Measure (HEM) as a floor on living costs — even if you swear you live cheaper. So a single applicant gets a higher HEM if they have kids or a partner.
The remaining net income, after expenses, must be enough to cover 38% Debt Service Ratio (DSR) — meaning total debt repayments (housing + cards + car + BNPL) can’t exceed 38% of net pay. That’s the equation we’re solving here.
Want a real number, not a ballpark?
These figures are estimates. A 30-min broker consult will run your specific scenario against the actual lender policies — no fees, no obligation.
Important: This calculator provides an estimate only and does not constitute credit advice. Actual rates, repayments, fees and approval are subject to lender policy and your individual circumstances. Comparison rates are based on a $150,000 loan over 25 years on a secured basis — see footer for the full disclaimer.