Estimating Peter’s Borrowing Power in Adelaide (2025)
When Peter sits down to apply for a home loan in Adelaide, lenders will review his salary, outgoings, debts and family responsibilities. Based on his details, here’s a realistic range of what he might borrow this year.
Financial Snapshot
- Gross Income: $132,000 PAYG + 17.5% super (≈ $23,100)
- Net Monthly Income: ≈ $7,800
- Savings: $40,000
- Existing Debt: $35,000 personal loan (repayment $823/month)
- Dependent: One 13-year-old child
- Super Balance: $228,000 (excluded from standard home-loan serviceability)
- First Home Owner Grant: Already claimed in QLD; not available in SA
Key Calculations
- Estimated Living Costs: ~$3,250/month (including child expenses)
- Funds Available for Mortgage: ~$3,727/month
- Lender-Safe Repayment Cap (30% of Income): ~$2,340/month
Loan Size Estimates
Assuming a 30-year term at a 6.5% interest rate:
- $2,340/month → ~ $370,000 loan
- $2,800/month → ~ $443,000 loan
- Stress-tested at 8.5% → ~$330,000–$400,000
Overall Purchase Budget
- $40,000 savings gives a 10% deposit on a $400,000 home
- With Lenders Mortgage Insurance (~$10,000), targeting up to $500,000
Conservative Borrowing Range
- Loan Size: ~$330,000–$430,000
- Property Budget: ~$370,000–$470,000
- Max with LMI: ~$520,000
Adelaide Market Fit
With median house prices around $700,000–$800,000, Peter’s budget is best suited to entry-level homes or units in outer suburbs such as Salisbury or Elizabeth.
Top Tips to Boost Your Borrowing Power
- Pay down the $35,000 personal loan to free up $823/month.
- Use online calculators from Adelaide Bank, CommBank and others.
- Speak with a mortgage broker for lenders with flexible serviceability rules.
- Check stamp duty concessions, especially on off-the-plan SA properties.
- Get pre-approval from major banks (NAB, Westpac, ANZ) to strengthen your offer.
Ready to see what you can borrow? Assess your borrowing potential today and get a roadmap to your dream home.
