What Are My Options?
One of the hardest conversations I have with first-home buyers starts with: “I earn good money. Why can’t I borrow more?”
You might earn $100,000-plus, have a stable job and savings behind you, then we run the numbers and your borrowing capacity comes back lower than expected. In 2026, higher interest rates and high property prices are making it particularly tough for single-income buyers.
That doesn’t mean buying is impossible. Sometimes it means changing the strategy.
Your salary is only one part of borrowing capacity
A lender does not look at salary alone. Car loans, credit-card limits, personal loans, HELP debt, dependants, living expenses and other commitments all matter. Two people on the same salary can therefore have very different borrowing capacities.
As an real time Rockett Finance example; at the time of writing, a single first-home buyer earning around $110,000 may have borrowing capacity in the vicinity of $520,000 in a relatively straightforward scenario. That is not a rule or a quote: the result can move significantly by lender and individual circumstances.
Lender selection matters too. Some lenders may treat HELP debt or certain boarder/rental income differently in limited circumstances, subject to current policy. Our job is to find an appropriate lender and structure for your situation.
The things quietly reducing your borrowing power
Car loans are one of the biggest constraints I see. Credit-card limits can also affect borrowing power even when the card is not fully used, and HELP debt can make a noticeable difference for some borrowers.
Sometimes the best strategy is not simply “save a bigger deposit”. We might look at whether using part of your savings to clear a car loan or another debt could improve the overall position.
There can be a cash-flow benefit too. The goal is not just approval; it is making sure the repayments fit your life afterwards.
Know what you can afford before you fall in love with a property
This is probably my biggest piece of advice to first-home buyers: get prepared first.
Knowing your realistic purchase range means you can search with confidence. You know roughly what repayments may look like, what deposit and buying costs you need and which properties are worth inspecting.
The last thing you want is to find your dream home, rush to prepare an offer and only then discover it is outside your reach. Preparation might not sound exciting, but knowing the numbers before you start looking is a game changer.
Your first property does not need to be your forever home
I know this personally. When I bought my first property, I bought further out than I ideally wanted and chose a unit instead of a house because that was what I could afford. It got me onto the property ladder.
Knowing what I know now, I would probably have explored townhouses more closely too. Depending on the property and location, they can offer a different balance of price, land component and body corporate costs. Every property is different.
The bigger lesson is that your first property does not have to be the home you would choose if money were unlimited. It can simply be your first asset.
That could mean a different suburb, an older or smaller home, a townhouse or unit, or buying further out. That is not failure. It is a strategy.
Family support may help bridge the gap
We are seeing more first-home buyers receive help from parents than we did several years ago. That might be a gifted deposit, family loan, parents releasing equity or a family guarantee.
A larger deposit can reduce the amount you need to borrow, which may help if borrowing capacity is tight. But it does not automatically solve every servicing shortfall. That is why we first work out what is actually stopping you from buying rather than assuming the answer is simply “save more”.
Sometimes you are closer than you think
Sometimes the plan is simply to clear a car loan, reduce unused credit-card limits, save a little longer, wait for an income change or build more deposit.
The useful outcome of a borrowing-capacity conversation is not always an approval today. Sometimes it is leaving with a clear roadmap for what needs to change next. “Not yet” is very different from “never”.
What about rentvesting?
For some buyers, purchasing an investment property while continuing to rent where they want to live can be another pathway.
But buying as an investor can affect some first-home buyer concessions or schemes, and deposit, LMI, tax and lending requirements may differ. It should make sense as an investment strategy, not just a workaround.
Do not compare your starting line with someone else’s
It is easy to look at your parents and think, “They bought at my age,” or compare yourself with a friend who bought a few years ago. But you are not buying in the same market or circumstances.
The RBA reported in August 2026 that national housing prices were still around 50% higher than at the start of the pandemic, despite recent easing. Someone else’s timeline is not a useful measure of whether you are doing well.
Start with the numbers, then build the strategy
If you are earning a good income and still feel like buying is out of reach, do not assume the answer is simply “I can’t afford property”. Find out what you can borrow, what is limiting you and what options are available.
Maybe you need to clear a debt, change the property type or location, use family support, consider rentvesting or spend six months getting into a stronger position.
At Rockett Finance, we can help you understand what you can realistically afford, what is affecting your borrowing capacity and what pathways may be available. The earlier you know the numbers, the more confidently you can start looking.
If you are ready to explore your options, Book an Appointment with Your Broker (that’s us!.
We’re here to help you through all stages of your journey, (even if yours hasn’t begun yet) and our appointments are complimentary!
Launch what’s next.
Your Broker,
Tara
Frequently Asked Questions (FAQs)
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There is no single answer based on salary alone. Lenders consider income, debts, credit limits, living expenses, dependants, HELP obligations and serviceability policy. A broker can model your position before you start house hunting.
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Yes. Existing repayments and credit limits can affect serviceability. Paying down or closing a debt may improve capacity in some cases, but the right strategy depends on your overall position.
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It can. HELP repayments are generally considered in mortgage serviceability, although lender treatment can vary in limited circumstances. Your broker can check current lender policy rather than assuming every lender assesses it the same way.
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Getting your borrowing position assessed before you become emotionally attached to a property can give you a clearer purchase range and more confidence when you are ready to make an offer. Formal pre-approval requirements and conditions vary by lender.
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Potentially, but it can affect some first-home buyer concessions or schemes and brings different deposit, lending and tax considerations. It should be assessed as an investment decision.
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RBA — Statement on Monetary Policy, August 2026 The RBA states that financial conditions are somewhat restrictive, cash-rate increases have flowed through to higher scheduled mortgage payments, and demand for new housing loans has eased. https://www.rba.gov.au/publications/smp/2026/aug/financial-conditions.html
RBA — Economic Conditions, August 2026 National housing prices were around 50% higher than at the start of the pandemic, despite recent easing. https://www.rba.gov.au/publications/smp/2026/aug/economic-conditions.html
APRA — HELP debt serviceability guidance APRA says HELP repayments are generally appropriately included in residential mortgage serviceability because they reduce income available for mortgage repayments. It also allows lender judgement in limited individual circumstances. Current lender policy must be checked before publication. https://www.apra.gov.au/news-and-publications/clarifying-treatment-help-debt-obligations-response-consultation
Moneysmart — Buying a house Moneysmart recommends getting finances sorted, budgeting, researching property prices and understanding the deposit and buying costs before purchasing. https://moneysmart.gov.au/home-loans/buying-a-house
ATO — First Home Super Saver scheme Owning an investment property generally means a person is not a first-home buyer for FHSS eligibility, subject to limited hardship rules. Use this as one example of why rentvesting can affect first-home-buyer entitlements. https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/first-home-super-saver-scheme