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

Home loan comparisons on Mozo - last updated 16 April 2021

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    Mozo Experts Choice 2021
    Smart Booster Home Loan

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

    interest rate
    comparison rate
    1.99% p.a.variable for 12 months and then 2.48% p.a. variable
    2.47% p.a.

    A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required. Winner of two Mozo Expert's Choice Award for 2021.

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    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    1.75% p.a.
    fixed 3 years
    2.22% p.a.

    $0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.

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    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    2.09% p.a.
    fixed 3 years
    2.43% 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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    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

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

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

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    Fixed Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    1.89% p.a.
    fixed 2 years
    2.15% p.a.

    Award-winning low rate home loan that could save you thousands. No application or ongoing fees, fee-free redraws, unlimited additional repayments and an optional offset account for $10/month. Minimum 10% deposit. Winner of Mozo’s Experts Choice Award for Online Home Lender of the Year 2021.^

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    Mozo Experts Choice 2021
    Well Balanced

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    2.17% p.a. variable
    2.20% p.a.

    Well Balanced home loan is a low rate home loan with free online redraw and no valuation fee. Purchase, Refinance or Equity Release purposes allowed. Offset Home Loan winner in the Mozo Expert's Choice Award for 2021.

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    Special Fixed Rate Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    1.89% p.a.
    fixed 2 years
    3.67% p.a.

    Great fixed low rate. Ability to split your loan between fixed and variable. Insurance discounts and $0 credit card or personal loan fee available. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Enjoy local branches and call centre.

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  • Hot Deal$3,000 cashback when you refinance your home loan to BOQ (T&Cs apply)
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    Mozo Experts Choice 2021
    Discount Fixed Rate

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    1.89% p.a.
    fixed 2 years
    3.05% p.a.

    Have the certainty of fixed repayments with a competitive rate from BOQ. Flexible repayment options available and make up to $5,000 in additional repayments annually. $3,000 cashback when you refinance your home loan to BOQ (min. $250k lending, max 80% LVR, T&Cs apply). Fixed Rate Home Loan Winner in the Mozo Expert's Choice Award for 2021.

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  • Hot Deal$3,000 cashback when you refinance with Virgin Money (T&Cs apply)
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    Special Offer Reward Me Fixed Rate Home Loan

    Owner Occupier, LVR <80%, 300k+

    interest rate
    comparison rate
    1.94% p.a.
    fixed 2 years
    2.77% p.a.

    Enjoy $3,000 cashback when you refinance with Virgin Money (T&Cs apply). Additional repayments up to $10,000 per annum. Reverts to the discounted variable rate on expiry of the fixed term.

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    Star Gold Home Loan

    Owner Occupier, Principal & Interest, Refinance Only, <60% LVR

    interest rate
    comparison rate
    1.79% p.a. variable
    1.84% p.a.

    An exceptional low rate for owner occupiers with 40% or more equity in their home. No ongoing fees. Unlimited additional repayments with free online redraws. loan size $150k to $750k, no construction loans. Metro Areas Only.

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    Fixed Rate Home Loan

    LVR <80%, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    1.89% p.a.
    fixed 3 years
    3.03% p.a.

    A People’s Choice 3 year fixed home loan allows you to enjoy a simple, non-complicated home loan with a competitive rate. There are no restrictions to the number of loans you can combine on a package. Lock in a competitive fixed interest rate with People’s Choice.

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    Discount Great Rate Home Loan (Fixed, Owner Occupier, Principal & Interest)

    LVR<80%, over $150k

    interest rate
    comparison rate
    1.69% p.a.
    fixed 1 year
    3.49% p.a.

    Get one of the lowest rates on the market with this fixed rate mortgage. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only. Mozo Experts Choice Awards - Home Lender Bank of the Year 2020.

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    Low Rate Home Loan

    Owner Occupier, Principal & Interest, <60% LVR

    interest rate
    comparison rate
    2.14% p.a. variable
    2.16% p.a.

    Get smart, flexible and cost-effective rates from homeloans.com.au. Complimentary 100% offset account and free online redraw. Unlimited additional repayments. Zero application or annual fees. Fast online application process.

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  • Hot DealReceive $3,288 cashback when refinancing to HSBC (T&Cs apply)
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    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    1.88% p.a.
    fixed 2 years
    2.86% p.a.

    Ability to split your home loan between Fixed and Variable. Dedicated Relationship Manager. Refinancers borrowing $250,000 or more will receive $3288 (T&Cs, eligibility and lending criteria apply).

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    Fixed Home Loan Special Offer

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    1.89% p.a.
    fixed 2 years
    2.85% p.a.

    Competitive low rates starting from 1.89% (2.85% comparison rate) 2 years fixed for owner occupiers. No monthly account keeping fees & No loan establishment fee.

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    Basic Home Loan

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

    interest rate
    comparison rate
    2.09% p.a.
    fixed 2 years
    2.56% 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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    Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    2.19% p.a. variable
    2.20% p.a.

    Competitive variable rate. Borrowers choose their repayment schedule (weekly, fortnightly or monthly) and can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

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    Back to Basics Special

    LVR<80%, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    2.44% p.a. variable
    2.45% 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
    2.29% p.a. variable
    2.23% p.a.

    Fast online application with no fees. Free extra repayments and redraw facility. Min 20% deposit. To reward borrowers for paying down their home loan, Athena will now automatically lower the rate as the loan is paid down. Winner of three Mozo Expert's Choice Award for 2021.

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  • Hot DealAvailable to self-employed borrowers
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    Prime Home Loan

    Owner Occupier, Principal & Interest, LVR <70%

    interest rate
    comparison rate
    2.44% p.a. variable
    2.49% p.a.

    A competitive rate for Aussies looking for a fast and flexible home loan. No credit scoring or ongoing fees. Extra repayments and redraw available. Get a dedicated specialist for the loan application process.

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    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    2.34% p.a. variable
    2.34% 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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    Smart Home Loan 80

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    2.48% p.a. variable
    2.50% p.a.

    A low-rate home loan that could save you thousands, with no ongoing fees plus unlimited extra repayments and free redraws. You'll need to be borrowing $1 million or less and have at least a 20% deposit required.

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Talk to a Mozo home loans expert

Buying your first home, refinancing your existing home or thinking of investing? Speak to Steve, our home loans expert today!

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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.