Around 86% of Australians who don’t own property earn less than $100,000, according to property ownership research.¹
Income influences borrowing capacity, but lenders also consider expenses, debts and loan structure when assessing home loan applications.
Australia’s median dwelling value reached about $892,000 in 2025, highlighting why planning and strategy can matter.²
Speaking with an Aussie Broker can help clarify borrowing power and explore potential loan options before starting a property search.
A common assumption about buying a home in Australia is that you need a very high income to make it possible.
With rising property prices and cost-of-living pressures, many people assume home ownership is only achievable for those earning well above average salaries.
Income certainly plays a role in the home loan process. Lenders assess income when determining borrowing capacity and whether a borrower can comfortably service repayments. However, income alone rarely tells the full story.
For many Australians, entering the property market also involves financial planning, loan structure decisions and understanding the options available. In some cases, strategy and understanding the process can influence what may be achievable.
Understanding how income fits into the broader picture can help potential buyers approach home ownership with clearer expectations.
What the data says about income and property ownership
Research into property ownership across Australia provides some insight into how income and home ownership are linked.
According to a national survey of property ownership patterns, around 86% of Australians who do not own property earn less than $100,000 annually.¹
At the same time, higher incomes tend to be more common among people who own multiple properties.
For example, around 60% of people who own two or more properties earn more than $100,000.¹
These findings show that income can influence a person’s ability to enter the property market. However, the relationship between income and property ownership is not always straightforward.
Income tends to grow over time, meaning people may enter the property market at different life stages depending on their financial circumstances.
Property ownership tends to increase with age and income
Research also shows that property ownership varies across different generations. In general, ownership rates increase with age, partly because incomes and savings often grow over time.
Home ownership by generation
Generation | Approximate home ownership rate |
Baby Boomers | ~75% |
Gen X | Higher ownership rates |
Millennials | Moderate ownership levels |
Gen Z | ~35% |
Source: Cotality (Women and Property Australia Report 2026)
These patterns suggest that income growth, savings, and financial planning can influence people when they enter the property market.
Younger Australians may be earlier in their careers, which can affect both income and savings levels. Over time, as financial circumstances change, home ownership may become more achievable.
You might also be interested in: How long does it take to buy your first home in Australia?
Understanding the Australian housing market
Income should be considered alongside broader housing market conditions. Property prices, lending policies and interest rates all influence affordability and borrowing capacity.
In 2025, Australia’s median dwelling value reached approximately $892,000, according to property data analysis.²
Snapshot of the Australian housing market (2025)
Market indicator | National figure |
Median dwelling value | ~$892,000 |
Lower quartile dwelling value | ~$684,000 |
Upper quartile dwelling value | ~$1,119,000 |
Median weekly rent | ~$679 |
Annual rent growth | ~5% |
Source: Cotality (Best of the Best Property Report 2025)
These figures show why affordability discussions often focus on income. However, they also highlight the importance of understanding the full borrowing picture, which includes lending criteria, loan structures, and financial planning.
How lenders assess borrowing capacity
When applying for a home loan, lenders consider several factors when determining borrowing capacity. Income is one of them, but it is assessed alongside other financial details.
Typical lending assessments include:
income and employment stability
living expenses
existing debts
credit history
interest rate buffers
household financial commitments
Because lenders have different policies and risk assessments, borrowing capacity can vary between institutions.
Understanding how lenders assess applications can help borrowers approach the process more strategically.
You might also be interested in: Understanding how much you can borrow
Why financial strategy can matter
While income influences borrowing capacity, financial strategy can also shape how borrowers structure their home loan.
For example, some buyers consider factors such as:
saving a larger deposit over time
reducing existing debts before applying
reviewing household expenses
choosing loan features that suit their financial situation
comparing multiple lenders
These decisions may influence how lenders assess a borrower’s application. For many buyers, simply understanding these factors early can help them prepare more effectively for entering the property market.
The role of deposits in affordability
Another major factor influencing home ownership is the deposit. Saving a deposit is often one of the largest financial steps for first-time buyers.
Many people assume they need a 20% deposit to purchase property, although this figure is often referenced because it may allow borrowers to avoid lenders mortgage insurance (LMI).
However, depending on lender criteria and eligibility requirements, some borrowers may be able to explore alternative deposit options.
Understanding deposit strategies can help buyers build a clearer financial plan and timeline for entering the property market.
Income differences can affect saving and borrowing
Income disparities can also influence how easily individuals accumulate savings for a deposit. Research into employment and income patterns highlights differences across age groups and genders.
For example, survey findings indicate that a larger share of women earn under $100,000 compared with men in the same cohort, particularly among younger age groups.¹
Lower incomes can affect:
the ability to save for a deposit
borrowing capacity
loan serviceability assessments
This highlights why financial planning, and guidance can be valuable for buyers navigating the property market.
You might also be interested in: How to start buying a home in Australia and why the first step is often the hardest
Why strategy often starts with understanding your options
For many Australians considering property ownership, the first step isn’t applying for a loan or making an offer on a property. It’s understanding what may be possible based on their financial situation.
This often involves reviewing:
borrowing capacity
deposit savings
loan structures
property price ranges
potential locations
Taking time to explore these areas can help buyers approach the property market with clearer expectations.
How an Aussie Broker can help you plan
Understanding home loan options and lender criteria can feel complex, especially for first-time buyers.
An Aussie Broker can help guide borrowers through the early stages of the process by explaining how lending works and comparing loan options.
With over 1,000 Aussie Brokers across more than 200 stores, Australians can access local home loan expertise across the country.
An Aussie Broker can help you:
understand how much you may be able to borrow
compare home loan products from a panel of lenders
explore deposit options
review loan structures and features
guide you through the application process
For many borrowers, having a conversation with a broker can help clarify what may be achievable based on their financial circumstances.
If you already have a home loan, reviewing it periodically may also help ensure it still suits your needs. Our guide explains when refinancing may be worth considering.
Income is important, but it isn’t the only factor
Income will always play an important role in the home loan process. However, property ownership decisions are rarely based on income alone.
Savings, financial planning, loan structures, and market conditions can all influence when and how people enter the property market. For many Australians, the most helpful step is simply gaining clarity on their financial position and options.
Sometimes, the question isn’t just “Do I earn enough to buy a home?” but “What strategy could help me move forward?”
Understanding that difference can help buyers approach the property journey with greater confidence.
