How much can I borrow on a $50,000 Income

Home loan comparisons on Mozo - last updated 7 December 2021

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    Mozo Experts Choice 2021
    Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    1.85% p.a.variable for 24 months and then 2.25% p.a. variable
    2.21% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

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    Mozo Experts Choice 2021
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    2.19% p.a. variable
    2.19% p.a.

    Enjoy a super low rate. $0 fees to consider. Fast and easy online application. Free redraw and free extra repayments. Flexible payment terms. Min 20% deposit required.

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    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    1.99% p.a. variable
    1.99% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

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    Variable Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    1.99% p.a. variable
    1.99% p.a.

    Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Minimum 25% deposit required.

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    Basic Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    2.14% p.a. variable
    2.14% p.a.

    Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.

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    Mozo Experts Choice 2021
    Variable Home Loan Special

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    1.99% p.a. variable
    2.02% p.a.

    Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st January 2022. Low Cost Home Loan winner in the Mozo's Experts Choice award 2021.

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    Discounted Home Value Loan

    Owner Occupier, Principal & Interest, LVR <70%

    interest rate
    comparison rate
    1.97% p.a. variable
    1.98% p.a.

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Plus, $3,288 cashback offer (conditions apply).

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    Special Fixed Rate Home Loan (Premium Plus Package, LVR <80%)

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    2.24% p.a.
    fixed 2 years
    3.73% p.a.

    Lock in a low fixed rate or choose to split your loan between fixed and variable. Insurance discounts and no fee credit card or zero fee personal loan available. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Limited time offer extended, T&Cs apply.

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    Rate Reducing Variable Rate Home Loan

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    1.99% p.a. variable
    1.89% p.a.

    OneTwo’s Rate Reducing Variable Rate Home Loan brings features a low variable rate for owner-occupier refinancers. It has low fees and rewards borrowers for repaying the loan by lowering their rate. (T&Cs apply). Available to refinancers in metro NSW and Victoria only.

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    Own Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    2.34% p.a.
    fixed 2 years
    2.59% p.a.

    Competitive fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

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    Discount Variable Home Loan

    Owner Occupier, LVR<70%, over $700,000

    interest rate
    comparison rate
    2.19% p.a. variable
    2.24% p.a.

    No monthly administration fees. Ability to make extra repayments and redraws. A great low rate. No ongoing fees. Experience the difference this established bank has to offer.

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    Equity Plus

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    1.82% p.a. variable
    1.85% p.a.

    Low rate variable home loan with optional offset. Free online redraw. No valuation fee. Purchase, refinance or equity release purposes allowed. Min 40% deposit.

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    UHomeLoan (1 Yr Fixed)

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    1.79% p.a.
    fixed 1 year
    2.18% p.a.

    Fast, easy to apply and no ongoing fees. Choose between weekly, fortnightly or monthly repayments. 1 year fixed rates are for new Owner Occupier Principal & Interest loans.

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    Mozo Experts Choice 2021
    Evaporate Variable Home Loan

    60-70% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    2.09% p.a. variable
    2.02% p.a.

    Fast online application with no fees. Free extra repayments and redraw facility. Min 20% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^

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    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    2.74% p.a.
    fixed 2 years
    2.32% p.a.

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

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    Economy Variable Home Loan

    Owner Occupier, Principal & Interest, <70% LVR, Debt to Income ratio <6

    interest rate
    comparison rate
    1.98% p.a. variable
    2.15% p.a.

    An ongoing low variable interest rate with free redraw, flexible repayment options and one free valuation. Discounted Economy variable rate available for owner occupier lending with max LVR of 70%. Refinance to BOQ by 31 January 2022 and get $3,000 cashback (T&Cs apply).

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    Fixed Rate Home Loan

    Home Loan Package, Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    2.09% p.a.
    fixed 3 years
    2.67% p.a.

    Ability to split your home loan between Fixed and Variable. Dedicated Relationship Manager. Min 20% deposit. Refinancers borrowing $250,000 or more could receive $3,288 cashback (T&Cs, eligibility and lending criteria apply).

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    Green Home Loan

    Owner Occupier

    interest rate
    comparison rate
    2.08% p.a. variable
    2.36% p.a.

    Great low rate on investment loans when you package with your owner-occupied loan.

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    Variable Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    1.89% p.a. variable
    1.90% p.a.

    No application fee, no monthly fees, no annual fees, no redraw fees. Minimum 10% deposit. Bank-backed. Offset account available. Fast online application process. Winner of Mozo’s Experts Choice Award for Online Home Lender of the Year 2021.^

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    Own Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    2.34% p.a.
    fixed 2 years
    2.59% p.a.

    Competitive fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 20% deposit required.

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    Mozo Experts Choice 2021
    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    1.79% p.a.
    fixed 1 year
    2.44% p.a.

    Competitive fixed rates across 1 to 5 year terms. No application fee or annual fee. Free extra repayments (up to $10,000 per year). Winner of Australia's Best Large Mutual Bank 2021.

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    Mozo Experts Choice 2021
    Discount Fixed Rate

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    2.59% p.a.
    fixed 2 years
    3.17% p.a.

    Lock in a competitive rate for 2 years. Only 20% deposit required. Flexible repayment options and make up to $5,000 in additional repayments annually. Refinance to BOQ by 31 January 2022 and get $3,000 cashback (T&Cs apply).

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    Back to Basics Special

    LVR<70%, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    1.99% p.a. variable
    2.00% p.a.

    No monthly account keeping fee, no ongoing annual fee and no loan establishment fee on new lending of $150,000 or more.

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    Mozo Experts Choice 2021
    Liberate Variable Home Loan

    70-80% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    2.19% p.a. variable
    2.08% p.a.

    Fast online application with no fees. Free extra repayments and redraw facility. Min 20% deposit. Athena automatically lowers the rate as the loan is paid down. Winner of three Mozo Expert's Choice Awards for 2021.

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    Mozo Experts Choice 2021
    No Frills Home Loan

    Owner Occupier, Principal & Interest, LVR <70%

    interest rate
    comparison rate
    2.19% p.a. variable
    2.19% p.a.

    Qudos Bank No Frills Home Loan with $0 bank fees and unlimited repayments. Winner of the Split Home Loan award in 2020. ^

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    Well Balanced Fixed

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    1.87% p.a.
    fixed 1 year
    1.89% p.a.

    Super low fixed rate and only 20% deposit required. Optional 100% offset account. Free extra repayments and redraw facility. Flexible repayment schedule.

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Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

What affects your borrowing power?

When determining how much you’ll be allowed to borrow, your bank or lender will take into account a number of factors. These include:

How much can I borrow?

The above calculator will give you an estimate of your borrowing power based on your current income and living expenses.

Let’s say that you’re earning $50,000 a year and currently spend $38,000 a year, with $14,000 of that going towards paying rent. Since you won’t have to worry about rent when you’re living in your newly purchased home, we can remove that from the equation. That puts your yearly expenses at $24,000.

Assuming an interest rate of 3.50% and a loan term of 25 years, you’ll be able to borrow somewhere in the ballpark of $236,842. 

By changing factors like your expenses or the loan you’re taking out, you might be able to increase your borrowing power. For example, by opting for a 30 year mortgage term instead of 25 years, you could borrow $256,154. Or, if you’re able to shave off $5,000 from your annual expenses, your borrowing power bumps up to $304,693. 

You can use the calculator above to work out how much you could potentially borrow in your situation. 

I want to borrow more. What are my options?

Unfortunately, if your income is $50,000 and you aren’t expecting a substantial pay increase in the immediate future, you may be limited in terms of how much banks will let you borrow. That said, there are still avenues available to you if your dream home falls outside your means.

If your parents or other family members have property of their own, they can act as your guarantors when taking out a loan. That means the equity in their house will be used as security for a portion of your home loan, essentially reducing the risk you pose as a borrower and allowing you to borrow more.

In the eyes of a bank, two incomes are better than one, because it lowers the risk of a serious illness or an unexpected job loss wiping out your ability to make repayments. So whether you’re a couple or a group of friends that have decided to pool their finances, you’ll find you’re in a much stronger position to borrow than if you went it alone.

If a joint application or guarantor home loan aren’t options, it might be wise to reevaluate your goals a little bit, and perhaps look outside your preferred areas (or even cities) for something that fits your budget. Sometimes it pays to think of the first property you own as a stepping stone into the market, so you can snap up the property of your dreams down the track.

How do I get approved for a home loan?

Income is just one factor in being approved for a mortgage. With the level of scrutiny that’s being applied to homebuyers’ finances nowadays, you’ll have to go to show you’re ready for a loan. 

On top of that, lenders will also be paying close attention to your credit score. If you’ve been nothing but responsible with lines of credit (that is, you make all your repayments in full and on time), you should be able to get in their good books. If not, you might want to hunker down and work on getting your credit score in top shape.

How much deposit should I have?

Ideally, you should have at least 20% of a property’s value saved up for a deposit, because that means you won’t need to pay Lenders Mortgage Insurance (LMI). That means if you have your sights set on a $500,000 apartment, you’ll need to have at least $100,000 saved. This might seem like a tall order, but lenders prefer to deal with borrowers who have proof of genuine savings, as that signals they’re less likely to default on the loan.

If a deposit of 20% is currently out of your reach, you’ll be glad to know there are loans out there with Loan-to-Value Ratios (LVRs) of up to 95%, meaning you could potentially put down a deposit of $25,000 on a $500,000 home. Just keep in mind that if you opt for one of these low deposit home loans, you’ll need to factor the cost of LMI into your budgeting.

How much interest will I pay? 

The amount of interest you’ll pay will depend on a few things, namely the size of the loan, the length of the loan term, and of course the interest rate. Let’s assume you’ve been approved to take out a loan of $250,000. You’re also looking at an interest rate of 3.50% p.a. and intend to pay it off over a period of 25 years. In this scenario, your total interest paid will be $125,468. 

If, however, you do a little extra work and find a home loan that offers a more attractive rate, you stand to pay a lot less. For example, if you opt for a home loan with an interest rate of 3.00% p.a. you'll pay $105,658 in interest over the life of the loan - a difference of almost $20,000. 

That’s why it’s a good idea to shop around before you borrow: even a small difference in the interest rate can save you tens of thousands of dollars in the long-term. For an idea of what low interest rates currently looks like, be sure to visit our home loan comparison page.

What will my monthly repayments be?

Your repayments, like the amount of interest you pay and how much you can borrow in the first place, will depend on a number of factors. These include:

As an example, if you’re taking out a loan of $250,000 for 25 years and paying an interest rate of 3.50% p.a., your monthly repayments will be $1,252. 

If you’re able to commit to more frequent repayments - that is, by paying weekly or fortnightly - you’ll be able to save more in interest over the life of your mortgage. For example, let’s say you opt to pay your loan in fortnightly installments, in which case you’d be paying $577 per fortnight. Because you’re making more frequent repayments, over 25 years, you could pay more than $1,000 less than if you were paying monthly.

Where should I look for a mortgage?

Now that you’ve got a rough estimate of how much you’ll be able to borrow, the next step is to find a home loan that suits you. Our home loan comparison table will give you a selection of quality options, and you can filter your search to hone in on the kind of home loan you’re after.