How Much Income Do You Need for an $800,000 Mortgage in Truganina or Tarneit?

Looking to buy a home in Truganina or Tarneit with an $800,000 budget? These popular growth suburbs in Melbourne’s west offer good infrastructure, schools, and improving transport links, making them a favourite for both first home buyers and investors.

But how much income do you need to comfortably afford a mortgage of that size—and get approved by a lender?

1. Understanding Loan Serviceability

When you apply for a mortgage, lenders assess your borrowing power based on:

• Gross income (individual or combined)

• Living expenses and number of dependents

• Existing debts (car loans, credit cards, buy-now-pay-later)

• Interest rate (typically assessed with a 3% buffer)

• Loan term (usually 30 years)

In 2025, most lenders assess serviceability at around 8–9%, even if your actual interest rate is closer to 6%.

2. Income Needed for an $800,000 Mortgage

For a full $800,000 loan over 30 years at an assessed rate of 9%, your monthly repayments would be about $6,430. Based on average household expenses and bank calculations, you’d generally need:

• At least $150,000–$180,000/year combined gross income, assuming minimal other debts.

This can vary depending on how many dependents you have, whether you have car loans or credit card debt, and whether you’re applying solo or jointly.

3. What If You Have a Deposit?

If you have a 20% deposit ($160,000) and are borrowing $640,000, your repayments drop to ~$5,140/month. In that case, an income of around $120,000–$140,000/year may be enough.

Having a strong deposit can also help you:

• Avoid Lenders Mortgage Insurance (LMI)

• Get better interest rates

• Increase your approval odds

  
  

4. Key Local Considerations: Tarneit & Truganina

These suburbs are part of Melbourne’s growing western corridor. While attractive for value, some lenders:

• Are more cautious with off-the-plan or house & land packages

• May apply stricter valuation rules (especially in new estates)

• Look at local infrastructure access—like proximity to Tarneit Station or future developments

Working with a local mortgage expert can help avoid surprises during the application.

5. Work With the Right Broker

Finding the best mortgage broker in tarneit or truganina can make the process easier. Whether you're going for a family home or an investment property, a qualified home loan broker or commercial broker can:

• Shop the best rate across multiple lenders

• Explain the conveyancing process in Victoria

• Help you avoid common issues with new builds and house & land packages

  
  

Final Thoughts

An $800,000 mortgage is achievable in Tarneit or Truganina, especially for dual-income households earning $150K+ with low debts. Just be sure to:

• Get pre-approved

• Understand your loan limits

• Work with a trusted mortgage broker and conveyancer

With the right planning, you’ll be well on your way to owning in Melbourne’s booming west.