From Mascot Apartment To Family Home: Your Safe Borrowing Range

Most Mascot apartment owners can safely borrow around 4.5–6 times gross household income to move into a family home, as long as repayments stay near 30–35% of after‑tax income and you keep a solid cash buffer. The bank may offer more, but APRA’s 3% buffer and your real lifestyle costs should set your true ceiling.

Here’s how to work out a decision‑grade number you can actually use this week.

Work out both your bank maximum and your safe borrowing limit before house hunting in Mascot.

Step 1: Know your bank maximum vs your safe limit

Banks start with your income, then apply HEM living costs, other debts and a 3% rate buffer. That gives you a bank maximum – not a recommendation.

Your safe limit is usually lower and should be based on three guardrails:

1. Debt-to-income (DTI) ratio – target 4.5–6× gross income for owner‑occupiers.
2. Repayment ratio – keep all home loan repayments near 30–35% of net income, even when rates are 3% higher.
3. Buffers – hold 6–12 months of stressed living costs plus all loan repayments in cash or offset (see similar guidance in our Alexandria piece: /insights/alexandria-apartment-to-family-home-safe-borrowing-limits).

If any one of those blows out, you’re stretching too far – even if the bank still says “yes”.