Strategy Lab
What happens after you buy — and what stops you buying again.
The property
Your numbers
used across the site- Deposit
- $50,000
- Household income
- $120,000
- Interest rate
- 5.19%
- Loan term
- 30 years
- Room rent
- $220/wk
- Growth
- 5% a year
- Horizon
- 20 years
Change these with the 💰 Your numbers button at the top of any page — every figure here follows.
Three tests, and you have to pass all three
The lowest of the three is what you can spend. It is usually not the deposit.
Buying a home to live in
$250,000
$200,000 borrowed, at 80% of the price
- Your deposit allows← the limit$200,000
- Income cap (6x)$720,000
- Affordability @ 7.19%$634,114
Buying a rental
$142,857
$92,857 borrowed, at 65% of the price
- Your deposit allows← the limit$92,857
- Income cap (7x)$840,000
- Affordability @ 7.19%$634,114
What's holding you back: deposit. Saving more is what moves this. A First Home Loan or a new build lets you in with less.
What the three tests are
- — you can borrow up to 80% of the price for your own home, 65% for a rental, 70% on a new build.
- — your total debt can't pass 6x your yearly income for your own home, 7x for a rental. New builds are exempt.
- — checked at 7.19%, about 2 points above the rate you'd actually pay. Only 75% of any rent counts.
- is tax-free, but most banks won't count it here. It helps you pay the loan; it won't get you the loan.