On a $60,000 gross annual salary in Australia, most lenders will approve a home loan in the range of $270,000 to $330,000, depending on your expenses, existing debts, and the lender. With very low expenses and no debts, some borrowers may qualify for up to $360,000.
Estimated Borrowing Power on $60,000
| Scenario | Estimated borrowing power | Monthly repayment at 6% |
|---|---|---|
| Low expenses, no debts | ~$330,000–$360,000 | ~$1,980–$2,160 |
| Moderate expenses, no debts | ~$280,000–$320,000 | ~$1,680–$1,920 |
| With $5k credit card limit | ~$250,000–$290,000 | ~$1,500–$1,740 |
| With HECS-HELP debt | ~$250,000–$290,000 | ~$1,500–$1,740 |
| With $300/month car loan | ~$240,000–$275,000 | ~$1,440–$1,650 |
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.
The Affordability Challenge at $60,000
A $60,000 gross salary places you at the lower end of the income spectrum for Australian home ownership. Your approximate net income is $50,000–$51,500 per year (~$4,170–$4,290/month after PAYG and Medicare levy).
At the APRA assessment rate of 9.00%, a $300,000 loan over 30 years requires monthly repayments of $2,414 at assessment — meaning lenders are testing whether roughly 58% of your gross monthly income ($5,000) can service the loan after living expenses. For most applicants, this is borderline.
The result: lenders are conservative with $60,000 income. Your deposit size, other assets, spending history, and whether you’re buying alone or with a partner all significantly affect the outcome.
HECS-HELP at $60,000 Income
The compulsory HECS repayment threshold in FY2025–26 starts at $54,435. At $60,000, the repayment rate is 1.0% of taxable income ($600/year = $50/month). While modest, lenders still deduct this as a monthly commitment.
Impact on borrowing power: approximately $8,000–$15,000 reduction. Smaller than at higher income levels, but still material on a tight budget.
Repayment Estimates by Loan Size
| Loan amount | Monthly repayment (6%, 30yr) | Fortnightly | % of $60,000 gross |
|---|---|---|---|
| $200,000 | $1,199 | $553 | 24% |
| $250,000 | $1,499 | $692 | 30% |
| $300,000 | $1,799 | $830 | 36% |
| $350,000 | $2,098 | $968 | 42% |
At 30% of gross income ($1,500/month), an $80,000 earner can comfortably service approximately $250,000. Most lenders will stretch further with strong financials, but the 30% benchmark is a good sanity check.
Deposit Requirements
| Purchase price | 10% deposit | Stamp duty (NSW est.) | Total funds | 5% deposit (with FHBG) |
|---|---|---|---|---|
| $300,000 | $30,000 | ~$8,990 | ~$43,000 | $15,000 + costs |
| $350,000 | $35,000 | ~$11,240 | ~$50,000 | $17,500 + costs |
| $400,000 | $40,000 | ~$13,490 | ~$57,000 | $20,000 + costs |
For first home buyers, the First Home Guarantee scheme allows eligible buyers to purchase with a 5% deposit and no LMI. This is particularly valuable at $60,000 income where saving a 20% deposit can take many years. See our First Home Guarantee guide.
What Can $60,000 Buy?
Realistic purchase prices for a $60,000 earner are $300,000–$420,000 (with a modest deposit). This is challenging but feasible in some markets.
| Location | What’s achievable |
|---|---|
| Regional NSW, VIC, QLD | Houses or established homes in many regional cities and towns |
| Perth outer suburbs | Houses in outer western suburbs |
| Adelaide outer suburbs | Houses and townhouses in outer areas |
| South-East QLD | Units and apartments in regional centres |
| Major capitals | Very limited — outer suburbs only, mostly units |
Reality check for Sydney and Melbourne: A $60,000 income makes it extremely difficult to buy in metropolitan areas. Even with a 20% deposit, the monthly repayments on a $300,000 loan ($1,800/month) represent a stretched but possible commitment at this income. Property within 50km of the Sydney or Melbourne CBD at $300,000 is extremely scarce.
Strategies to Improve Your Position
1. Increase your income before applying. An $8,000–$10,000 raise to $68,000–$70,000 adds approximately $50,000–$70,000 in borrowing power. Ask for a pay review or develop an in-demand skill.
2. Buy with a partner. A combined income of $120,000 more than doubles your individual borrowing power. See our joint income $120k guide.
3. Use the First Home Super Saver Scheme. Contributions to your super fund can be withdrawn to fund a first home deposit, offering tax advantages. See our FHSS guide.
4. Consider shared equity. Some state governments offer shared equity schemes where the government co-purchases a share of the property, reducing the loan you need.
5. Choose a guarantor loan. A family member can guarantee part of your loan using equity in their property, potentially eliminating the need for LMI. Discuss this with a mortgage broker.
FAQ
Can I get a home loan on $60,000 in Australia?
Yes, but your borrowing power is limited to approximately $270,000–$330,000. In major capital cities, this is challenging — but in regional areas and outer suburbs of Adelaide and Perth, this can be sufficient for an established home. Using the First Home Guarantee (5% deposit, no LMI) and other government schemes can help.
What deposit do I need on $60,000?
For a property at $300,000, a 10% deposit is $30,000 plus buying costs (~$43,000 total in NSW). With the First Home Guarantee, the deposit requirement drops to 5% ($15,000 plus costs). Building a deposit on $60,000 takes disciplined saving — consider using the FHSS to build your deposit inside super.
Borrowing power estimates are indicative only. For advice tailored to your situation, speak with a licensed mortgage broker. Find one through MoneySmart.