Loan Guide
How Much Can I Borrow on a $120,000 Salary? (2026)
On a $120,000 salary, you could borrow approximately $474,632 for a home loan at 6.5% over 30 years. This estimate uses the standard 30% serviceability ratio — spending no more than 30% of your gross income on mortgage repayments.
Popular salary guides: $80k, $100k, $120k, $150k, $200k .
See your take-home pay: Tax on $120,000 salary.
Need a personalised estimate? Use the full Borrowing Power Calculator with debt and expense inputs.
Estimated borrowing power $474,632 at 6.5% over 30 years
Borrowing Power at Different Rates
How much you can borrow on $120,000 changes significantly with interest rates:
| Rate | Max Borrowing | Monthly Repayment | Total Interest |
|---|---|---|---|
| 5.5% | $528,365 | $3,000 | $551,634 |
| 6.0% | $500,375 | $3,000 | $579,625 |
| 6.5% | $474,632 | $3,000 | $605,367 |
| 7.0% | $450,923 | $3,000 | $629,078 |
| 7.5% | $429,053 | $3,000 | $650,947 |
| 8.0% | $408,850 | $3,000 | $671,149 |
What $474,632 Gets You
Monthly repayment: $3,000 This is 30% of your gross monthly income of $10,000. You'd still have $7,000 per month before tax for other expenses.
Total interest: $605,367 Over 30 years at 6.5%, you'd pay $605,367 in interest on top of the $474,632 principal.
Rate sensitivity: ±$27,990 per 0.5% Each 0.5% change in interest rate shifts your borrowing capacity by roughly $27,990.
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Frequently Asked Questions
How much can I borrow on a $120k salary?
On a $120,000 salary, using the standard 30% serviceability ratio, you could borrow approximately $474,632 at 6.5% over 30 years. Your maximum monthly repayment would be $3,000.
What mortgage can I afford on $120k?
At 6.5%, a $120,000 salary supports a mortgage of about $474,632 with monthly repayments of $3,000. If rates drop to 5.5%, your capacity increases to $528,365.
How do interest rates affect borrowing power on $120k?
Interest rates significantly impact how much you can borrow. On a $120,000 salary, borrowing power ranges from $408,850 at 8% down to $528,365 at 5.5%. Each 0.5% rate change shifts capacity by roughly $27,990.
Is the 30% rule accurate for mortgage affordability?
The 30% rule (spending no more than 30% of gross income on housing) is a common guideline but conservative. Lenders may use different ratios and also consider your existing debts, living expenses, and credit history. Use our full Borrowing Power Calculator for a more personalised estimate.
Need a more personalised estimate?
Our Borrowing Power Calculator factors in your existing debts, living expenses, and dependants for a more accurate estimate.
Already know your loan amount? Check repayments on $450k or use the full Mortgage Calculator.