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

1. Pay down the $35,000 personal loan to free up $823/month.
2. Use online calculators from Adelaide Bank, CommBank and others.
3. Speak with a mortgage broker for lenders with flexible serviceability rules.
4. Check stamp duty concessions, especially on off-the-plan SA properties.
5. 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.