OwnerCost

Australia · Affordability

How much house before owner cost is 28% of gross income?

OwnerCost’s own 28% planning ceiling, applied to this market’s ownership costs. Below: how lenders here actually assess affordability, and what this estimate leaves out.

Example with the default inputs. Change any field to recalculate.

About $554,218

At this price, monthly owner cost is 28% of gross income in Australia.

Max price
$554,218
Down 20%
$110,844
Owner cost / month
$3,033

P&I $2,773 · loan $443,374

How lenders in Australia assess affordability

  • Lenders assess whether you could keep up repayments at an interest rate at least 3 percentage points above your loan's rate — the serviceability buffer APRA expects. They also consider your other debts and living costs.

    Source: APRA — Update on macroprudential settings (serviceability buffer) (November 2024); APRA — Update on macroprudential settings (23 July 2025)

  • Since 1 February 2026, APRA limits each authorised deposit-taking institution (banks, credit unions and building societies) to 20% of its new mortgage lending at a debt-to-income ratio of six times or more, measured separately for owner-occupier and investor loans. It is a limit on each lender's lending, not a cap on an individual borrower.

    Source: APRA — Limit on high debt-to-income home loans (from 1 February 2026)

OwnerCost's 28% of gross income is its own planning ceiling for monthly owner cost. It is not an Australian lender or regulatory rule.

Checked against these sources on 24 September 2026.

What this estimate includes

  • Principal and interest at the rate you enter
  • Home insurance
  • Strata / council rates

What it does not include

  • Your other debts — lenders count them; this estimate does not
  • Lender stress or serviceability tests — the estimate uses the rate you enter, not a stressed rate
  • Lender approval rules, credit history and deposit requirements
  • Purchase taxes and fees (see the Stamp page)

How we calculate

Highest price at which principal and interest, insurance and strata equal 28% of gross monthly income (OwnerCost's planning ceiling). Monthly rate = quoted nominal annual rate ÷ 12. Payment = P·i / (1 − (1 + i)^−n) over n months.

Rules checked against these sources on 24–25 September 2026.