To buy a $500,000 house in Australia with a standard 20% deposit ($100,000) and a 30-year loan at 6%, you need a gross income of approximately $75,000–$85,000 to comfortably service the $400,000 mortgage. With a 10% deposit and LMI, or using the First Home Guarantee (5% deposit), you may qualify on a lower income.
The Numbers at a Glance — $500,000 Property
| Item | Amount |
|---|---|
| Purchase price | $500,000 |
| 20% deposit | $100,000 |
| Loan amount (80% LVR) | $400,000 |
| Stamp duty (NSW, owner-occupier) | ~$17,990 |
| Other buying costs (legal, inspection, conveyancing) | ~$3,000–$5,000 |
| Total funds needed (20% deposit) | ~$122,000–$124,000 |
| Monthly repayment at 6%, 30yr | $2,398 |
| Monthly repayment at 6%, 25yr | $2,573 |
Income Required by Deposit Size
| Deposit | Loan amount | LMI payable | Monthly repayment (6%, 30yr) | Income needed |
|---|---|---|---|---|
| 5% ($25,000) | $475,000 | Waived (FHBG) | $2,848 | ~$85,000–$95,000 |
| 10% ($50,000) | $450,000 | ~$7,500–$9,000 | $2,698 | ~$80,000–$90,000 |
| 20% ($100,000) | $400,000 | Nil | $2,398 | ~$75,000–$85,000 |
Income needed = gross annual income to comfortably pass lender serviceability assessment at the APRA 3% buffer (9% test rate). Actual requirements vary by lender.
Minimum Income for a $500,000 Home
Using the APRA assessment framework, the minimum income to service a $400,000 loan (20% deposit scenario) is approximately $70,000–$75,000 — assuming minimal other debts and living expenses benchmarked at HEM for a single adult. However, most brokers recommend having a comfortable buffer above the minimum.
For a joint application: A combined income of $90,000–$100,000 comfortably supports a $400,000–$450,000 loan on a $500,000 property.
Repayment Table by Income and Loan Size
| Gross income | Max loan (est.) | Suitable for $500k property? |
|---|---|---|
| $60,000 | ~$290,000–$330,000 | Only with a very large deposit ($170,000+) |
| $70,000 | ~$340,000–$380,000 | With 20–30% deposit ($100,000–$150,000) |
| $80,000 | ~$390,000–$440,000 | Feasible with 10–20% deposit |
| $90,000 | ~$445,000–$500,000 | Comfortable with 10% deposit |
| $100,000 | ~$490,000–$560,000 | Very comfortable |
Buying Costs Beyond the Deposit
Many buyers focus only on the deposit, but total buying costs include:
| Cost | Amount (est.) |
|---|---|
| Stamp duty (NSW, non-FHB) | ~$17,990 |
| Stamp duty (NSW, FHB — likely exempt at $500k) | $0 |
| Conveyancing / legal fees | $1,500–$2,500 |
| Building and pest inspection | $500–$800 |
| Lender’s valuation fee | $200–$500 |
| Loan establishment fee | $200–$600 |
| Moving costs | $1,000–$3,000 |
| Total buying costs (non-FHB, NSW) | ~$21,000–$26,000 |
NSW first home buyers are exempt from stamp duty on properties up to $800,000 (FY2025–26). Concessional rates apply on properties up to $1,000,000. This means FHBs buying at $500,000 pay zero stamp duty in NSW.
First Home Buyer Concessions at $500,000
A $500,000 purchase price is accessible to first home buyers in most states:
| State | FHB stamp duty status at $500,000 |
|---|---|
| NSW | Fully exempt (threshold $800,000) |
| VIC | Fully exempt (threshold $600,000) |
| QLD | Fully exempt (threshold $500,000) — exactly at the threshold |
| WA | Reduced concession (full exemption to $430,000) |
| SA | No exemption — full duty applies |
| TAS | 50% concession up to $600,000 |
Use our stamp duty calculator to calculate your exact state liability.
Monthly Repayment by Interest Rate
At a $400,000 loan over 30 years:
| Rate | Monthly repayment | Annual repayment |
|---|---|---|
| 5.50% | $2,271 | $27,252 |
| 6.00% | $2,398 | $28,776 |
| 6.50% | $2,528 | $30,336 |
| 7.00% | $2,661 | $31,932 |
| 7.50% | $2,797 | $33,564 |
A 1.00% rate difference on a $400,000 loan equates to approximately $263/month — meaningful but manageable at most income levels above $75,000. Use our mortgage repayment calculator for a detailed estimate.
FAQ
Can I buy a $500,000 house on a $70,000 salary?
It’s possible but tight. On $70,000 with a 20% deposit ($100,000), the loan is $400,000. At the APRA test rate of 9%, the monthly repayment is approximately $3,218 — which is challenging to service at $70,000. With low debts and expenses, some lenders may approve. Most borrowers at $70,000 would need a 25–30% deposit to comfortably qualify or aim for a slightly lower purchase price.
Is $500,000 affordable in Australia?
Yes — there are many markets where $500,000 buys an established house or quality apartment. Regional NSW, QLD, SA, WA, and parts of outer Melbourne offer strong value at this price point. See our affordability guides by city.
Estimates are indicative only. Stamp duty varies by state and buyer type. For advice tailored to your situation, speak with a licensed mortgage broker. Find one through MoneySmart.