What’s my borrowing power on $120,000 a year?
A home up to about
$776,810
On $120,000 a year, you could afford a home up to about $776,810 with a 20% deposit of $155,362. The mortgage payment would be about $3,806 a month.
- Deposit
- $155,362
- Mortgage
- $621,448
- Payment a month
- $3,806
How your deposit changes it
| Saved for a deposit | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $32,708 (5%) | $654,156 | $621,448 | $3,806 |
| $69,050 (10%) | $690,498 | $621,448 | $3,806 |
| $155,362 (20%) | $776,810 | $621,448 | $3,806 |
Stamp duty on a $776,810 home
Stamp duty depends on the state and on whether you’re a first home buyer. On an established home at this price, you’d pay:
| State or territory | First home buyer | Other buyers |
|---|---|---|
| New South Wales | $0 | $29,148 |
| Victoria | $41,679 | $41,679 |
| Queensland | $15,606 | $20,811 |
| Western Australia | $28,555 | $31,126 |
| South Australia | $36,560 | $36,560 |
| Tasmania | $30,146 | $30,146 |
| Australian Capital Territory | $0 | $20,795 |
| Northern Territory | $38,452 | $38,452 |
Your savings need to cover this as well as the deposit. Work it out for your purchase with the stamp duty calculator.
How it’s worked out
Lenders check you could afford the repayments at your rate plus 3% (9.2% here). On $120,000 you take home about $7,590 a month; after $2,500 of living costs, $5,090 a month can go on repayments at that higher rate. Lending above 6 times income ($720,000) is limited.
Assumes one buyer with no other debts and living costs of $2,500 a month, at 6.2% over 30 years, with repayments tested at that rate plus 3%. New owner-occupier variable home loans averaged 6.2% in August 2026 (RBA).
- Lenders must check you could still afford the repayments if rates were 3 percentage points higher. This tests repayments at your rate plus 3% against your take-home pay after living costs and other debt repayments.
- Living costs are your own estimate. Lenders compare them with a benchmark for your household and use whichever is higher, so you may be offered less.
- Lenders can only make a limited share of loans above 6 times your income, counting all your debts.
Frequently asked questions
What’s my borrowing power on $120,000 a year?
On $120,000 a year, you could afford a home up to about $776,810 with a 20% deposit of $155,362. The mortgage payment would be about $3,806 a month.
How much deposit do I need on $120,000?
With $32,708 saved, you could buy a home up to about $654,156. With $69,050 saved, you could buy a home up to about $690,498. With $155,362 saved, you could buy a home up to about $776,810.