Can Your Income Get You Into the Home You Want? Here’s How to Find Out

At WestGen Finance, we often get asked: “How much do I actually need to earn to afford a home like that?”

Understanding your borrowing power — how much a lender is likely to approve based on your income, expenses, and financial situation — is one of the most important steps before you start house hunting.

To give you a real-world example, let’s look at what it would take to purchase a $1.39 million home in Willetton, one of Perth’s most family-friendly suburbs known for its excellent schools and strong community appeal.

The Numbers Behind the Home

For a property priced at $1.39 million, here’s what the figures typically look like:

• Deposit: To avoid Lenders Mortgage Insurance (LMI), you’d need a 20% deposit — that’s about $278,000.

• Upfront costs: Factoring in stamp duty and settlement costs brings your total contribution to around $346,000.

• Loan amount: You’d then be looking at a loan of roughly $1.1 million.

With a 30-year loan term and an average interest rate of 5.6%, your monthly repayments would sit around $6,384.

What Income Would You Need?

To comfortably afford this level of borrowing, here’s an estimate of the income required:

• Single buyer: Around $205,000 gross annual income (depending on personal expenses and liabilities).

• Couple (no kids): A combined income of approximately $210,000 per year, or $105,000 each.

These figures can vary widely depending on your debt, spending habits, and existing assets — but they offer a useful benchmark for what lenders may expect.

Why Borrowing Power Matters

Your borrowing power shapes what you can afford and how confidently you can move in the market. By understanding your income-to-loan ratio early, you can:

• Set realistic property expectations

• Plan your deposit strategy

• Identify opportunities to upgrade or refinance using your existing equity

Explore Your Borrowing Power with WestGen Finance

Everyone’s financial situation is different — and so is their borrowing power.

At WestGen Finance, we help you understand exactly where you stand and what’s possible based on your income, lifestyle, and goals. Whether you’re a first-time buyer or planning an upgrade into an established suburb like Willetton, we’ll guide you through the numbers and find the right strategy for you.

Curious about your own borrowing power? Chat with our team today to explore what you could afford and how to make your next move confidently.