Rates could hit a 15-year high. How much can you borrow on your salary?

If the RBA lifts the cash rate to 4.60% on Tuesday, it will be the highest it's been since late 2011 (Canstar). That's on top of three increases earlier in 2026 (Aussie). For anyone buying a home, the question is simple: how much can my pay actually carry?

The 30% rule of thumb

A common line for "mortgage stress" is spending more than 30% of your gross income on repayments. It's a rough guide, not a lending rule, but it's a useful sanity check. Below is the loan each salary could carry if repayments stay at 30% of gross pay, on a 25-year principal and interest loan.

Single income, 2026–27 resident tax rates, no HELP debt. Loan sizes rounded to the nearest $1,000.

Why the 9.75% column matters

Banks don't just check whether you can afford today's rate. Lenders are expected to test that you could still make repayments if rates rose about 3 percentage points. So a 6.75% loan gets tested at roughly 9.75%, and that's often what caps how much you can borrow. Every RBA rise lifts the test rate too, which is why borrowing power shrinks faster than repayments grow.

Real bank assessments also count your living expenses, other debts, dependants and credit cards, so your actual limit can be lower. Treat these numbers as a starting point.

Two incomes

For a couple on $85,000 each ($170,000 combined), 30% of gross income is $4,250 a month. That supports about $615,129 at 6.75%, or $476,919 if tested at 9.75%.

See how a rate rise changes your repayments

Want to know what you actually bring home each fortnight? Use the pay calculator. This article is general information, not financial or credit advice.