How Much Can I Borrow on $120,000? (2026–27)
A single person earning $120,000 could borrow about $659,000 for a home loan. See how rates, children and a partner change it.
How much can I borrow on $120,000?
Earning $120,000 a year, you take home about $7,590 a month after tax and the Medicare levy. After typical living costs for a single person on your income of about $2,283 a month, and with no other debts, you'd have about $5,307 a month spare when a lender tests your repayments at 9.00%. Over 30 years, that supports a loan of roughly $659,000, about 5.5 times your salary. The six times income cap would allow up to $720,000, so your budget at the test rate is what limits you.
Borrowing power at different interest rates
Lenders add a 3 percentage point buffer to the rate before checking what you can afford.
| Your rate | Tested at | Borrowing power | Monthly repayment |
|---|---|---|---|
| 5.50% | 8.50% | $690,000 | $3,918 |
| 5.75% | 8.75% | $674,000 | $3,933 |
| 6.00% | 9.00% | $659,000 | $3,951 |
| 6.25% | 9.25% | $645,000 | $3,971 |
| 6.50% | 9.50% | $631,000 | $3,988 |
| 6.75% | 9.75% | $617,000 | $4,002 |
| 7.00% | 10.00% | $604,000 | $4,018 |
With children, or as a couple
Dependants raise the living costs a lender counts. A couple earning $120,000 between them (half each) pays less tax than one person on the same total, but has higher living costs.
| Dependants | Expenses counted (single) | Single on $120k | Couple on $120k combined |
|---|---|---|---|
| No children | $2,283 | $659,000 | $647,000 |
| 1 child | $2,783 | $597,000 | $585,000 |
| 2 children | $3,283 | $535,000 | $523,000 |
If your living costs are higher
Lenders use your own expenses if they are above the benchmark.
| Your living expenses | Borrowing power |
|---|---|
| $2,500 a month | $632,000 |
| $3,000 a month | $570,000 |
| $3,500 a month | $508,000 |
| $4,000 a month | $446,000 |
| $5,000 a month | $321,000 |
Nearby salaries
$100k · $110k · $130k · $140k · all salaries
Assumes a single Australian resident, 2026–27 tax rates with the low income tax offset and Medicare levy, a 6.00% principal and interest loan over 30 years tested at 9.00%, no other debts or credit cards, and our household expense benchmark. Every lender is different, so treat this as an estimate only. See also repayments by loan size and $120,000 after tax.
Frequently asked questions
How much can I borrow on a $120,000 salary?
Roughly $659,000 as a single applicant with no debts or dependants, at a 6.00% rate tested at 9.00% over 30 years. Repayments would be about $3,951 a month.
How much house can I afford on $120,000?
With a 20% deposit of about $164,750, a $659,000 loan would buy a home worth about $823,750, before stamp duty and fees, which also come out of your savings.
Can a couple on $120,000 combined borrow more?
A couple earning $120,000 split evenly could borrow about $647,000. Two people pay less tax on the same total income, but lenders also count higher living costs for a couple.
Last reviewed October 2026. Estimates for general information only, based on 2026–27 rates. Check important figures with the relevant government agency or a licensed professional.