It’s one of the first questions most first home buyers ask. And it’s a fair one, because the headline numbers can be confronting.
Canstar analysis reported by Domain in February 2026 found a single buyer needs to earn around $232,000 to buy a median-priced house in Sydney, $166,000 in Brisbane and $145,000 in Melbourne. Even in Darwin, the most affordable capital, the figure sits at about $103,000.
Those figures are a useful starting point, but they aren’t the whole story. How much income you need depends on the property you want, your deposit, your debts, your living expenses and whether you’re buying alone or with someone else.
You don’t need to afford the median house. You need to afford the right home for you. All you need is enough.
Contents
- How much do you need to earn to buy a house in Australia in 2026?
- Does borrowing as a couple make a difference?
- Why your income isn’t the only thing lenders look at
- How much deposit do you need to buy a house?
- How to work out what’s enough for you
- How can a mortgage broker help first home buyers?
- You don’t need the biggest loan. You need the right one.
- FAQs
How much do you need to earn to buy a house in Australia in 2026?
There’s no single income that guarantees you can buy a house. But the numbers below give a sense of what’s required to buy a median-priced house as a solo buyer.
| Capital city | Income needed for a median house (solo buyer) |
|---|---|
| Sydney | $232,000 |
| Brisbane | $166,000 |
| Melbourne | $145,000 |
| Darwin | $103,000 |
These estimates assume a 20% deposit, annual living expenses of $24,000 and a variable interest rate of 5.75%, based on Canstar analysis in February 2026.
For context, the same analysis found a single person earning the national average full-time wage of $104,807 could borrow around $533,000. That’s short of the median house price in every capital city.
Does borrowing as a couple make a difference?
Two incomes can make a significant difference to your borrowing capacity.
Canstar found couples who each earn the national average wage could afford a median-priced house in most capital cities except Sydney, and a median-priced unit in every capital.
Keep in mind a second income also brings a second set of expenses and debts into the assessment. Lenders look at your combined position, not just your combined salary.
Why your income isn’t the only thing lenders look at
Your income sets the foundation for your borrowing capacity, but it’s only one part of the picture.
Your living expenses
Lenders assess how much of your income is left after everyday costs such as groceries, transport, utilities, childcare and subscriptions. Two people on the same salary can have very different borrowing capacity because of how they spend.
Your existing debts
Car loans, personal loans, HECS-HELP debt, buy now pay later arrangements and credit card limits can all reduce how much you can borrow. Credit card limits count even if you pay the balance off each month.
The serviceability buffer
APRA-regulated lenders assess new borrowers at an interest rate at least three percentage points above the loan’s actual rate. This checks that you could still manage repayments if rates rise.
Your deposit
The size of your deposit affects how much you need to borrow, the lenders available to you and whether you’ll need to pay lenders mortgage insurance (LMI).
Your employment type
Full-time, part-time, casual, contract and self-employed income can all be accepted. However, lenders have different policies on how long you need to have been in a role and how they verify your income.
How much deposit do you need to buy a house?
A 20% deposit is often treated as the benchmark because it generally means you can avoid LMI. On a $700,000 home, that’s $140,000 before stamp duty and other upfront costs.
But 20% isn’t the only option. Since 1 October 2025, the Australian Government’s 5% Deposit Scheme has allowed eligible first home buyers to purchase with a 5% deposit and no LMI. The expanded scheme removed income caps and limits on the number of places, although property price caps still apply depending on where you buy.
A smaller deposit can help you buy sooner. It also means borrowing more and paying more interest over the life of the loan, so it’s worth weighing up both sides.
How to work out what’s enough for you
Rather than starting with the median price, start with your own numbers.
- Work out what you can comfortably repay each month, not just what a lender might approve.
- Review your spending and existing debts, since both affect your borrowing capacity.
- Check which first home buyer schemes and state grants or concessions you may be eligible for.
- Get a clear view of your borrowing capacity before you start looking at properties.
Our finance calculators can give you a starting estimate, and our property readiness quiz can help you understand where you stand.
How can a mortgage broker help first home buyers?
Different lenders assess income, expenses and employment differently. The amount one lender is willing to lend may not match what another will offer.
A mortgage broker can compare options across the lenders available to them, explain which government schemes you may be eligible for and help you prepare your application before you apply.
Most importantly, a broker can help you find a loan that suits your life, not just the maximum amount you can borrow.
You don’t need the biggest loan. You need the right one.
Buying your first home isn’t about stretching to the limit of what a lender will approve. It’s about finding a home and a loan that leave room for the rest of your life.
All you need is enough. Talk to an Inovayt first home buyer specialist about what enough looks like for you.
FAQs
Can I buy a house on a single income in Australia?
Yes, depending on your income, deposit, expenses and where you want to buy. Canstar’s analysis suggests a solo buyer on the national average wage may find a median house out of reach in the capitals, but a unit, a regional property or a smaller deposit through a government scheme may change what’s possible.
How much can I borrow on a $100,000 salary?
It depends on your expenses, debts, deposit and the lender’s assessment rate. As a guide, Canstar estimated a single buyer on $104,807 with no other debts could borrow around $533,000 in February 2026. A mortgage broker can give you a more accurate figure based on your circumstances.
Do lenders use gross or net income?
Lenders generally start with your gross income, then factor in tax, living expenses and existing commitments to work out how much you can afford to repay.
Does HECS-HELP debt affect how much I can borrow?
It can. Your HECS-HELP repayments reduce your take-home pay, which can reduce your borrowing capacity. How lenders treat HECS-HELP varies, so it’s worth checking with a broker.
Sources
- Domain: How much you need to earn to buy a house now (24 February 2026, Canstar analysis)
- Your Finance Guide: 5% Deposit Scheme rules
