All 8 states & territories · 2024 stamp duty rates · Free

House Affordability Calculator Australia

Find out exactly how much you can borrow, what stamp duty you'll pay in your state, whether LMI applies, and what your monthly repayments will be. Includes APRA's 3% serviceability buffer, all state stamp duty rates, First Home Owner Grant, and full upfront cost breakdown.

Borrowing shortfall

$306k

You need $695k but estimated capacity is $389k

Monthly repayment

$4,280

Deposit

$55k (7.3%)

LVR

92.7%

Repay-to-income

42.8%

Your income

Your gross annual income

Before tax

Partner's gross annual income

Leave 0 if buying solo

Other income (rental, dividends)

Annual total

Monthly expenses & debts

Monthly living expenses

Food, utilities, transport, subscriptions etc.

Existing debt repayments

Car loan, HECS, credit card minimums per month

Purchase details

Property price

Total savings / deposit available

State / Territory

Additional costs

Legal fees, building inspection, removalists

First home buyer

Apartment / unit (not house)

Mortgage details

Interest rate (p.a.)

Variable rate ~6.0–6.5% for owner-occupier P&I (2024)

Loan term

Monthly repayment (actual)

$4,280

At 6.3% p.a.

Assessment rate repayment

$5,718

At 9.3% (APRA buffer +3%)

Loan amount

$695k

LVR 92.7%

Deposit

$55k

7.3% of property

Repayment-to-income

42.8%

< 30% is comfortable

Max borrowing (est.)

$389k

APRA serviceability estimate

✗ Borrowing required exceeds estimated capacity

You need to borrow $695k but your estimated capacity is $389k. Consider a lower-priced property, larger deposit, reducing debts, or increasing income.

LMI applies ($19,462): With an LVR of 92.7%, Lenders Mortgage Insurance is required. This can be capitalised into the loan (added to borrowing). A 20% deposit ($150k) would avoid LMI.

Estimated ongoing costs (annual)

Council rates$1,500

Maintenance (1% of value)$7,500

Home & contents insurance$1,800

Water rates$1,200

Total annual ongoing$12,000 ($1,000/mo)

How much can I afford to spend on a house in Australia?

Affordability in the Australian property market involves several interconnected calculations that lenders, buyers, and financial advisers all approach slightly differently. The two most important dimensions are your borrowing capacity — how much a bank will lend you — and your actual repayment affordability — how much of your monthly income the repayments consume without creating financial stress. These are not the same number.

Under APRA guidelines, Australian banks must assess mortgage applications using an interest rate at least 3 percentage points above the actual loan rate. In 2024, with variable rates around 6.0–6.5%, this means banks stress-test your application at 9.0–9.5%. This buffer was introduced to ensure borrowers can handle rate rises. The result is that many buyers are approved for less than they might expect — and that the approval limit represents a genuine stress test, not a comfortable spending ceiling.

The 30% housing stress threshold

Australian policymakers and financial counsellors generally define housing stress as spending more than 30% of gross household income on mortgage repayments or rent. At current rates, a household earning $150,000 combined should ideally keep their monthly mortgage repayment below $3,750. On a 30-year loan at 6.25%, that corresponds to a loan of approximately $600,000 — well below median property prices in Sydney ($1.4M) and Melbourne ($900k), and closer to affordability in Brisbane ($800k), Adelaide ($700k), and Perth ($650k).

Stamp duty in Australia — all states compared (2024)

Stamp duty is the single largest variable upfront cost when buying property in Australia, and it varies dramatically by state. On a $750,000 property, stamp duty ranges from around $20,000 in Queensland to over $30,000 in New South Wales. First home buyers receive significant concessions in most states, with full exemptions available below certain price thresholds.

State	FHB exemption	Top rate	Mid-range example
NSWNew South Wales	Full exemption ≤ $800k	7%	$10,530 + 4.5% over $351k
VICVictoria	Full exemption ≤ $600k	5.5%	$2,870 + 6% over $130k
QLDQueensland	Full concession ≤ $500k	5.75%	$1,050 + 3.5% over $75k
WAWestern Australia	Full exemption ≤ $430k	5.1%	$9,435 + 5% over $360k
SASouth Australia	Exemption new homes ≤ $650k	5.5%	$21,330 + 5.5% over $500k
TASTasmania	50% concession ≤ $600k	4.5%	$12,860 + 4.25% over $375k
ACTAustralian Capital Territory	Full exemption ≤ $1M	5.4%	$31,697 + 5.1% over $1M
NTNorthern Territory	$10k discount on new homes	4.95%	Formula-based below $525k

Use the calculator above to get the precise stamp duty figure for your state and purchase price, including any first home buyer concession that applies.

Full upfront costs of buying a house in Australia

Stamp duty is the headline upfront cost, but several other expenses add up quickly when purchasing property. Buyers should budget for all of these before committing to a purchase price:

Cost item	Typical range	Notes
Stamp duty	$0–$40,000+	Biggest variable — depends on state and price
Lenders Mortgage Insurance	$0–$25,000+	Required when LVR > 80%. Can be capitalised.
Conveyancing / legal	$1,500–$3,000	Varies by state and conveyancer
Building & pest inspection	$400–$800	Strongly recommended for houses
Loan application fees	$0–$1,000	Many lenders waive these
Moving costs	$500–$3,000	Depends on distance and volume
Connection / utility setup	$200–$500	Power, gas, internet setup
Immediate repairs/renovations	Varies	Budget 1–2% of purchase price as a buffer

A common mistake for first home buyers is to calculate the deposit as 10–20% of the purchase price without accounting for these additional upfront costs. On a $700,000 property with a 10% deposit ($70,000), the stamp duty alone in Victoria is around $37,000, leaving just $33,000 as the actual deposit — an LVR of 95%, which would trigger significant LMI costs. Always calculate available deposit after deducting all upfront costs.

Frequently asked questions

How much can I borrow to buy a house in Australia?+

Your borrowing capacity in Australia is assessed by lenders under APRA (Australian Prudential Regulation Authority) guidelines. Since October 2021, banks must test that you can afford repayments at your actual interest rate plus a 3% buffer. So if the current rate is 6.25%, the bank assesses you at 9.25%. Beyond the buffer, lenders look at your gross income, existing debts, number of dependants, and living expenses (often compared to the Household Expenditure Measure). As a rough guide, most lenders will approve loans of 5–7 times your annual gross income, but the actual figure depends heavily on your expenses and debt situation.

How much deposit do I need to buy a house in Australia?+

The minimum deposit required is 5% of the property price, but there are important nuances. With less than 20% (LVR above 80%), you must pay Lenders Mortgage Insurance (LMI), which can add tens of thousands to your upfront costs. With exactly 5%, you may qualify for the First Home Guarantee (FHBG), where the government guarantees 15% of the loan so you can avoid LMI without a 20% deposit. In practice, saving 10–20% gives you more lender choice, avoids LMI, and gives you buffer against market fluctuation. You also need to set aside money for stamp duty and other upfront costs on top of your deposit.

How is stamp duty calculated in Australia?+

Stamp duty (also called transfer duty or land transfer duty) is a state government tax on property purchases. Each state and territory has its own rate structure — there is no national rate. It is generally calculated as a percentage of the purchase price or property value, using a tiered system where higher-value properties attract higher rates. Stamp duty on a $750,000 property ranges from approximately $20,000 in QLD to over $30,000 in NSW. Most states offer substantial concessions or full exemptions for first home buyers, typically up to a purchase price threshold of $500,000–$1,000,000 depending on the state.

What is LMI and how much does it cost?+

Lenders Mortgage Insurance (LMI) is insurance that protects the bank — not you — if you default on the loan when the LVR is above 80%. Despite protecting only the lender, the borrower pays the premium. The cost varies by lender, LMI provider (primarily Genworth and QBE), loan amount, and LVR. As a rough guide: at 85% LVR you might pay 0.5–0.7% of the loan; at 90% LVR around 1.2–1.5%; at 95% LVR around 2.5–3%. On an $800,000 loan at 90% LVR, LMI could be $12,000–$15,000. LMI can usually be capitalised into the loan, but this increases your total debt and repayments.

What is the First Home Owner Grant (FHOG) in Australia?+

The First Home Owner Grant (FHOG) is a state government grant for eligible first home buyers purchasing or building a new home. The amount and eligibility criteria vary by state: Queensland currently offers $30,000; Tasmania $30,000; South Australia $15,000; and most other states $10,000. The grant typically applies only to new homes (not established homes in most states) and has a property price cap. The grant is separate from the federal First Home Guarantee (FHBG) scheme, which allows eligible buyers to purchase with a 5% deposit without paying LMI.

What percentage of income should my mortgage be in Australia?+

The commonly cited guideline is that mortgage repayments should not exceed 30% of gross household income — above this is considered housing stress. In Australia's major cities where property is expensive relative to income, many buyers end up above this threshold, particularly in Sydney and Melbourne. APRA's serviceability buffer (3% above the lending rate) effectively means banks stress-test your repayments to a level significantly higher than the actual payment. A repayment-to-income ratio between 25–30% is considered comfortable, 30–35% is stretched but manageable, and above 35% increases financial vulnerability.

What ongoing costs should I budget for after buying?+

Beyond the mortgage, homeowners in Australia should budget for: council rates ($1,000–$3,000+ annually depending on state and property value), home and contents insurance ($900–$2,500 annually), water rates (around $1,000–$1,500 annually), and maintenance (rule of thumb: 1% of property value per year for houses). Apartments also have body corporate (strata) fees ranging from $2,000 to $10,000+ annually depending on the building's facilities. These ongoing costs add $500–$1,500 per month to the true cost of ownership that is often overlooked when calculating affordability.

Is it better to buy a house or apartment in Australia?+

From an affordability perspective, apartments are typically cheaper to purchase but often come with body corporate fees that can significantly add to monthly costs. Houses generally appreciate faster than apartments over the long term in most Australian markets, particularly in capital cities. Apartments may suit buyers with smaller deposits or those prioritising inner-city locations. The right choice depends on your lifestyle, location preferences, long-term goals, and budget for ongoing costs. This calculator includes body corporate fees in ongoing cost estimates for apartments, giving you a clearer total cost comparison.

Related Finance & Real Estate Tools

Australia Stamp Duty Calculator

Calculate precise stamp duty costs for any state or territory.

Income Tax Calculator Australia

Estimate your take-home pay and tax obligations in Australia.

Rent vs Buy Calculator

Compare the long-term financial impact of renting versus buying.

Rental Yield Calculator

Calculate the return on investment for your rental property.

Disclaimer: This calculator provides estimates for informational purposes only. Stamp duty rates, first home buyer concessions, FHOG amounts, and LMI premiums change frequently — always verify current figures with your state revenue office and lender before making decisions. Borrowing capacity estimates are indicative only; actual approval depends on your lender's credit policy, credit history, employment status, and full financial assessment. This tool does not constitute financial or mortgage advice. Consult a licensed mortgage broker or financial adviser before proceeding.