On a $150,000 gross annual salary in Australia, most lenders will approve a home loan in the range of $780,000 to $930,000, depending on your living expenses, debts, and the lender. With minimal commitments, some borrowers at this income may qualify for more than $1,000,000.
Estimated Borrowing Power on $150,000
| Scenario | Estimated borrowing power | Monthly repayment at 6% |
|---|---|---|
| Low expenses, no debts | ~$920,000–$1,020,000 | ~$5,520–$6,120 |
| Moderate expenses, no debts | ~$800,000–$900,000 | ~$4,800–$5,400 |
| With $20k credit card limit | ~$730,000–$830,000 | ~$4,380–$4,980 |
| With $700/month car loan | ~$680,000–$780,000 | ~$4,080–$4,680 |
| With HECS-HELP debt | ~$720,000–$820,000 | ~$4,320–$4,920 |
Based on 30-year P&I loan at 6.00% p.a., assessed at 9.00% (APRA buffer). Use our borrowing power calculator for a personalised estimate.
How Lenders Assess $150,000
Gross monthly income: $12,500. Net income after PAYG and Medicare levy: approximately $103,000–$105,000/year ($8,580–$8,750/month).
At the APRA assessment rate of 9.00%, an $850,000 loan over 30 years requires a monthly repayment of approximately $6,841. Lenders compare this against your income after living expenses and all commitments.
At $150,000, the Medicare Levy Surcharge applies if you don’t hold private hospital cover (income over $93,000 for singles in FY2025–26 attracts a 1–1.5% surcharge). Holding private hospital cover avoids this and is generally prudent at this income.
HECS-HELP at $150,000
The compulsory HECS repayment rate at $150,000 in FY2025–26 is 10.0% of taxable income ($15,000/year = $1,250/month). This is a significant commitment.
Effect on borrowing power: approximately $140,000–$170,000 reduction compared to an identical applicant without HECS.
At $150,000, if your HECS balance is under $80,000–$100,000, consider the trade-off: paying HECS reduces mortgage borrowing power lost to the serviceability assessment, but HECS debt indexed at CPI is often cheaper than mortgage debt at 6%. Your broker can model this for you.
Repayment Estimates
| Loan amount | Monthly repayment (6%, 30yr) | Fortnightly | % of $150,000 gross |
|---|---|---|---|
| $600,000 | $3,597 | $1,660 | 29% |
| $700,000 | $4,196 | $1,937 | 34% |
| $800,000 | $4,796 | $2,214 | 38% |
| $900,000 | $5,395 | $2,490 | 43% |
| $1,000,000 | $5,995 | $2,767 | 48% |
At 30% of gross income ($3,750/month), comfortable housing costs support approximately $624,000 in borrowing at 6% over 30 years. At 35–40%, you’re looking at $728,000–$832,000. The lender assessment at 9% is the binding constraint — not the 30% heuristic — at this income.
Deposit Requirements
| Purchase price | 20% deposit | Stamp duty (NSW est.) | Total funds needed |
|---|---|---|---|
| $900,000 | $180,000 | ~$35,835 | ~$221,000 |
| $1,000,000 | $200,000 | ~$40,335 | ~$247,000 |
| $1,100,000 | $220,000 | ~$44,835 | ~$272,000 |
At $150,000 income, saving a 20% deposit typically takes 5–8 years while renting in a major city, or 3–5 years with disciplined saving in a lower-cost city or living situation. An offset account can reduce the interest cost during the savings phase — see our offset calculator.
First Home Guarantee Note: The First Home Guarantee income cap is $125,000 for singles (FY2025–26). At $150,000, you are not eligible. However, the First Home Owner Grant (FHOG) may still apply in some states — check your state’s eligibility conditions.
What Can $150,000 Buy?
With borrowing power of $800,000–$930,000 and a 20% deposit of $175,000–$215,000, purchase prices of $975,000–$1,145,000 are achievable.
| City | What’s achievable |
|---|---|
| Sydney | Apartment in inner suburbs; house in middle to outer suburbs (40–60km from CBD) |
| Melbourne | Established house in middle and outer suburbs; quality apartments inner city |
| Brisbane | House in many established suburbs; premium properties in outer areas |
| Perth | Wide range of properties including desirable suburbs |
| Adelaide | High-quality properties in most areas of the city |
At $150,000 single income, buying a house in inner Sydney remains challenging (median ~$1.45M for houses in the greater metro), but it is feasible in many other major markets.
High-Income Specific Strategies
Salary sacrifice into super — reducing your taxable income through salary sacrifice lowers HECS repayments and marginal tax. However, it also reduces your declared income for mortgage purposes. This requires careful timing — discuss with a financial planner before applying. See our salary sacrifice guide.
Trust structures for high-income earners — some high-income earners hold property in trusts or companies for tax reasons. This is complex and can affect how lenders assess income. Standard home loans typically require personal name ownership.
Investment property borrowing — at $150,000, negative gearing starts becoming meaningful. Use our negative gearing calculator to model the tax benefits.
FAQ
What mortgage can I get on $150,000 in Australia?
At $150,000, most lenders will approve mortgages of $800,000–$930,000 depending on debts and expenses. With a solid 20% deposit ($180,000–$200,000 on a $900,000–$1,000,000 property), you’re well-positioned to buy in most Australian cities.
Can I get a $1 million mortgage on $150,000?
A $1 million mortgage is possible on $150,000, but it requires low expenses, no other debts, and a strong credit profile. Monthly repayments would be approximately $5,995 at 6% — around 48% of gross monthly income, which is high but not unusual in major cities.
Is $150,000 enough for a house in Sydney?
Sydney’s median house price is approximately $1.45–1.5 million (April 2026). On $150,000 single income with borrowing power up to ~$930,000, you’d need a very large deposit ($520,000+) to bridge the gap. This is feasible for established homeowners leveraging equity, but difficult for first-time buyers. A second income significantly changes the picture. See our income needed to buy in Sydney guide.
Borrowing power estimates are indicative only. For advice tailored to your situation, speak with a licensed mortgage broker. Find one through MoneySmart.