How Much Can First Home Buyers Borrow in Australia? (2026 Guide)

Wondering how much can first home buyers borrow in 2026? Most Australians on a single income of around $90,000 to $110,000 can borrow somewhere between $480,000 and $620,000, but your real number depends on your debts, your living expenses, the lender you pick, which first home buyer scheme you stack on top, and the applicable interest rate at the time of applying for the loan.

On the Gold Coast, where median house prices now sit above $1.3 million, knowing your true borrowing power is the difference between making confident offers and watching properties slip past you. This guide breaks down exactly how lenders work it out in 2026, what’s changed under APRA’s new rules, and how to push your number higher without overstretching.

Quick Answer: How Much Can a First Home Buyer Borrow?

• Rough rule of thumb: Most lenders will lend 4 to 6 times your annual income, depending on debts and expenses.
• Single on $90,000: Roughly $480,000 to $560,000.
• Couple on $180,000: Roughly $900,000 to $1.1 million.
• APRA’s 3% buffer: Banks must stress-test you at 3 percentage points above the actual rate.
• New 2026 DTI cap: From February 2026, only 20% of new loans can exceed a 6x debt-to-income ratio.
• First Home Guarantee: Buy with a 5% deposit, no LMI, no income caps (since 1 October 2025).

How Much Can a First Home Buyer Borrow?

The short answer: lenders typically lend somewhere between 4 and 6 times your gross annual income, but the exact number swings based on your dependents, debts, and which lender you apply to. The same applicant can see a $50,000 to $150,000 difference between two banks for the same income, which is why knowing how mortgage brokers assess your affordability matters so much in 2026.

Indicative Borrowing Power by Income

These are rough estimates only, based on a 30-year loan, 6.5% assessment rate, no dependents, no existing debts, and minimal credit card limits. Your real first-time buyer maximum mortgage could be higher or lower, depending on the lender.

Run your own numbers through our borrowing power calculator for a more accurate estimate based on your situation.

How Lenders Calculate Your Borrowing Power

When you’re a first-time buyer, your borrowing capacity is determined by several key factors: income, expenses, debts, deposit size, loan term, and the assessment rate. Each lender weighs these differently, and that’s where the gap between banks opens up.

Income (PAYG, Bonuses, Overtime, Self-Employed

Lenders count salary, overtime, and bonuses, but they shade them. Base salary is taken at 100%; bonuses and overtime are usually 80%. Self-employed individuals need two years of tax returns.

Living Expenses and the HEM Benchmark

Banks compare your living expenses to the Household Expenditure Measure (HEM) and use the higher figure. Higher 2025 HEM benchmarks mean lower borrowing power than a year ago.

Existing Debts (Credit Cards, Car Loans, HECS/HELP)

Existing debts (like credit cards or personal loans) eat into your serviceability fast. A $10,000 credit card limit (even with a $0 balance) cuts capacity by roughly $50,000 to $60,000. HECS on $100,000 knocks off $40,000-$70,000.

Serviceability Buffer (3% Stress Test)

APRA requires every bank to assess your loan at 3 percentage points above the actual rate. If your rate is 6.0%, the bank’s test rate is 9.0%. 

Did you know that ‘Non Bank’ lenders are not subject to these same APRA rules, and why they can sometimes offer you a higher loan amount?

Debt-to-Income (DTI) Ratio, and the New 2026 APRA Cap

From February 2026, no more than 20% of any bank’s new loans can have a DTI of 6x or more, which is a real constraint for higher-income first home buyers and a strong reason to use a broker.

How Much Deposit Do You Need on the Gold Coast?

5%, 10%, and 20% Deposit Scenarios on a $750,000 Home

• 5% deposit ($37,500): Loan of $712,500. No LMI under the First Home Guarantee
• 10% deposit ($75,000): Loan of $675,000. LMI of roughly $14,000-$18,000
• 20% deposit ($150,000): Loan of $600,000. No LMI

When You’ll Need to Pay LMI (and How to Avoid It)

LMI kicks in at 80% LVR or higher. The simplest way to avoid it as a first- time buyer in 2026 is the First Home Guarantee, which lets you purchase with as little as 5% deposit, without paying Lenders Mortgage Insurance (LMI), lifting first-time home buyer loan limits without penalty. See how much deposit you need to buy a house or a mortgage with no deposit options.

First Home Buyer Schemes that Boost What You Can Buy

First-time home buyers in Australia may be eligible for stamp duty exemptions or concessions, depending on their state or territory. These schemes can significantly affect how much you need to save and how much you can borrow.

• First Home Guarantee: Since 1 October 2025, no income caps, no place limits. Gold Coast cap is $1,000,000
• QLD $30,000 FHOG: New builds under $750,000, contracts before 30 June 2026
• QLD Stamp Duty Exemption: From 1 May 2025, zero duty on new homes (no cap), and on established homes up to $700,000
• FHSS: Save up to $50,000 in super at 15% tax. Couples can pool $100,000

If you’re eligible for the First Home Buyers Grant Gold Coast, this could boost your deposit and improve your borrowing power.

How to Increase Your Borrowing Power

There are a few ways you can improve your first home buyer’s borrowing capacity and lift your first-time buyer’s maximum mortgage:

• Reducing credit card limits or personal debt
• Pay down personal and car loans before applying
• Cutting unnecessary expenses in the months before applying
• Applying jointly with a partner or co-buyer
• Choose a lender with higher DTI tolerance
• A mortgage broker can help you identify which lenders are more favourable to first home buyers and what changes you can make to borrow more (if needed)

Borrowing the maximum isn’t always the best option. It’s important to choose a loan that gives you flexibility and peace of mind, not financial stress.

How Go Mortgage Helps Gold Coast First-Time Home Buyers

If you’re wondering how much first-time home buyers can borrow, Go Mortgage can help you get clear on numbers and loan options.

Voted Broker of the Year 2023, our Arundel team compares 30+ lenders and will calculate your borrowing capacity, explore first home buyer incentives, and help you build a strategy that gets you into your first home sooner. Book your free consultation with mortgage broker for first home buyers on the Gold Coast.

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