How Much Can I Borrow on a 50k Salary?

Understanding how much you can borrow (your borrowing power) is an important first step in purchasing a property. Without knowing your maximum borrowing power, you can be wasting time inspecting properties that you might not be able to receive finance for.

In general, you need to understand your borrowing potential and what your monthly mortgage repayments will look like in order to budget your finances accordingly to ensure you do not stretch yourself too thin.


There are many factors that affect how much you can borrow. This may include:

  • Purpose (home buying scenario)
  • Your Income
  • Your Expenses (including other loans)
  • Type of employment
  • The person (or entity) that is borrowing
  • The lender you borrow from
  • Loan term (length of the loan)
  • Credit Score

To answer this question, we provide a rough guideline below, but it is best to reach out and speak with us (obligation free) so you can get a very good picture of what is feasible and realistic and what is just a lender dangling a fake carrot in order to get you to enquire.

How much can I borrow on a 50k salary?

On a $50,000 salary (before tax), you can borrow between $200,000 and $350,000 for the purpose of purchasing a property to live in to be repaid over a 30 years loan term. If you are looking to purchase an investment property, you can borrow between $300,000 and $600,000 depending on factors including how much rent you will receive from the investment property you are planning to purchase.

The reason why the borrowing amount has such a broad range is that it depends on the factors listed above. For example, if you have an existing car loan and credit card debt, this will severely impact how much you can borrow. Another example is the lender you choose. Each lender has different assessment policies, which means applying for a loan at one lender may provide you with a significantly higher borrowing capacity than another.

Another couple of things to consider is how much deposit you have and the interest rate that you will be lent money at. In short, the higher the deposit, the better it can be for both your financial situation and the interest rate that a lender will offer you.

If you credit score does not meet the minimum requirement for the lender, you may not even be allowed to borrow from that lender at all!

To get a more accurate picture of how much you can borrow on a $50,000 income, use our borrowing power calculator below and enter your income and details to provide a more accurate estimate. If you would like a free, no obligation in-depth assessment of your borrowing power, please email or contact us using the form.

Should I be borrowing to my maximum capacity?

It is generally not advisable for many Australians to be borrowing at their maximum capacity unless they understand in-depth the risks and the plan that they have for their property purchases.

At Reservoir Finance, our values-based approach means that we encourage responsible borrowing (not only responsible lending that is pushed by the regulators and media) as opposed to encouraging you to borrow to your maximum capacity in order to increase our profits.

This means, we will work with you to build a higher level of financial literacy and will give you honest feedback of the risks you may face if you do choose to borrow at your maximum borrowing power.

Who is the best lender for 50k salary loans?

There is no “best lender for 50k salary loans” because everyone’s personal circumstances are different. A self-employed borrowing may be better suited to one lender over a normal full time salaried employee. As such, we strongly recommend you speak with a mortgage broker like Reservoir Finance who can provide you with a free, obligation free assessment of your borrowing power and we can even recommend and help you apply lenders who would be best suited to your personal circumstances.


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