Sure, saving a deposit is important, but your income can hold the real key to getting into the market. That’s because it shapes your borrowing power.
It stands to reason that lenders will look closely at your personal income when you apply for a home loan.
It’s not just about you being able to comfortably handle loan repayments. Lenders also have a legal responsibility to be sure you’re not taking on too much debt.
The challenge for home buyers is that it can be unclear what sort of income you need to qualify for a home loan.
The reality is that there’s no one-size-fits-all number.
How much you need to earn to buy a home can hinge on where you plan to buy – and whether you plan to buy solo, or team up with a co-buyer.
Average income is over $100,000 – is it enough?
Across Australia, average weekly earnings for full-time employees are around $2,130. That adds up to an annual income of about $110,791.
These figures are based on May 2025 data, so chances are, the average is a little higher in early 2026.
Even so, the average full-time income may not always be enough for some home buyers to get into the market – especially if they choose to buy solo.
Income requirements vary between cities
Domain looked at how much buyers around Australia likely need to earn to get into the market, assuming a 20% deposit.
It found that a solo buyer in Sydney, the nation’s most expensive property market, may need to earn about $232,000 annually to buy a home. A couple buying in Sydney should each earn $121,000.
Melbourne buyers fare slightly better. A single person needs around $145,000 annually, while a couple each needs about $85,000.
In Brisbane, a single buyer should aim for $166,000, dropping to $94,000 for each person in a couple.
A solo buyer in Adelaide should earn about $143,000, or an income of $84,000 when coupled.
In Perth, where home prices have jumped 97% in the past five years, a single buyer should have an income of $147,000 to buy a home, falling to $86,000 for each person in a couple.
Buying solo in Hobart usually requires an annual income of around $118,000. For a couple, the income required is about $72,000 per person.
Darwin has the nation’s most affordable property. Reflecting this, a single buyer could potentially buy a home with an income of $111,000, or around $68,000 per person as a couple.
Finally, in the nation’s capital, solo buyers would need to earn about $151,000 to buy a place in Canberra, or $88,000 for each of a couple.
The solution could be flexibility – or government schemes
It’s important to point out that Domain’s analysis is based on buyers opting to buy a house, rather than an apartment.
This matters because houses typically cost more than apartments.
Bear in mind too, the income needs noted above assume a buyer pays the city’s median house price. You may be able to find a more affordable home, depending on where you’re looking to buy.
This highlights the value of being flexible about what and where you buy, especially if you’re a first home buyer.
Additionally, there are a number of government first home buyer schemes that could potentially help you buy sooner.
For instance, the federal government’s 5% Deposit Scheme lets first home buyers get started with a smaller deposit and zero lenders mortgage insurance.
Property price caps apply – or another scheme might be more suitable for your situation – so feel free to reach out to have a chat about them.
Could you upsize your income? Talk to us first
A survey by Canstar found around one-in-two Australians expect a pay rise in the months ahead. If that’s you, you may get a handy boost to your borrowing power.
However, if you’re thinking of raising a hand for overtime work, it’s worth noting that not all lenders include 100% of overtime pay in their income assessment. The same can apply to commissions and bonus payments.
That’s why it’s so important to speak to us – to get a clear idea of your borrowing power based on your current income.
We can help you understand how much you can afford to borrow across different lenders. It may not be necessary to give up leisure time for overtime to achieve your home-buying goal.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
