Enter your gross monthly income, existing debts, and deposit. The 28/36 rule gives a conservative maximum home price — with context on LMI, the First Home Super Saver scheme, the FHOG, and the APRA 3% buffer.
A buyer in Sydney earning A$10,000/month gross with A$400/month in debts and A$178,000 saved (20% of A$890,000 target): the 28% housing cap is A$2,800/month. At 6.2% over 25 years, that services a loan of ~A$399,000. Add A$178,000 deposit: maximum affordable price roughly A$577,000.
APRA buffer cross-check: if lenders stress-test at 9.2% (6.2% + 3%), A$2,800/month at 9.2% over 25 years services only ~A$302,000. Add the deposit: ~A$480,000 practical ceiling. In Sydney’s market, a higher income or larger deposit is typically required.
The 28/36 rule is a conservative baseline. APRA requires Australian lenders to assess borrowers at the contract rate plus 3% buffer. Enter your expected contract rate plus 3% in the rate field to model the lender’s stress-test scenario and find your practical maximum.
Australian specifics: LMI is required when your deposit is less than 20% of the property value. The First Home Guarantee allows eligible buyers to purchase with 5% down without LMI. The First Home Super Saver (FHSS) scheme can boost your deposit using voluntary Super contributions taxed at only 15%.
Lenders Mortgage Insurance is required when your deposit is less than 20% of the property value (LVR above 80%). LMI protects the lender, not you. For a $700,000 loan with 10% deposit, LMI might add $15,000–$20,000 to your loan. The First Home Guarantee can help eligible buyers avoid LMI at 5% deposit.
FHSS lets you make voluntary Super contributions (up to A$15,000/year, A$50,000 lifetime) and withdraw them for a home deposit. Contributions are taxed at 15% (vs your marginal rate) and withdrawals are taxed at marginal rate minus a 30% offset — significant savings for higher earners.
A one-off state grant for eligible first-home buyers of new or substantially renovated homes. Typically A$10,000–A$30,000 depending on the state and price threshold. Check your state revenue office for current eligibility.
APRA requires lenders to assess whether you can afford repayments at your contract rate plus at least 3%. If your rate is 6.2%, you must qualify at 9.2%. Enter contract rate + 3% in the rate field to see your practical ceiling.
Housing costs should not exceed 28% of gross monthly income; all monthly debts should not exceed 36%. In Australia, the APRA 3% buffer is typically the binding constraint for determining maximum borrowing capacity.
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