What Aussies need to make in a year to be an above-average earner – and what it means for buying a house they can afford

Australians earning more than $98,218 a year are now considered above-average earners if they work full-time.

On this salary, a single professional can now buy a house worth more than $639,000. 

New Australian Bureau of Statistics data released on Thursday showed the average, full-time salary surged by 4.5 per cent in the year to November, to $1,889 a week, before bonuses and overtime.

Someone earning the average, full-time salary of $98,218 can now borrow $511,500, with RateCity revealing banks can lend a borrower with a 20 per cent deposit about 5.2 times their salary.

RateCity research director Sally Tindall said the Reserve Bank of Australia’s 13 interest rate rises in 18 months – taking the cash rate to a 12-year high of 4.35 per cent – had eroded what banks could lend

The average-income Australian borrower, with $127,875 in savings, can now buy a $639,375 home, if they could handle $3,146 in monthly repayments.

That is below the median house price in all of Australia’s capital cities.

The maximum borrowing capacity of $511,500 for an average-income individual is well below Australia’s average new mortgage of $624,383, which suggests couples are typically taking out home loans.

RateCity research director Sally Tindall said the Reserve Bank of Australia’s 13 interest rate rises in 18 months – taking the cash rate to a 12-year high of 4.35 per cent – had eroded what banks could lend.

‘A total of 13 RBA hikes – four of which were doubles – has shattered the maximum amount households can borrow from the bank,’ she told Daily Mail Australia.

‘However, with the RBA now in a holding pattern, wages growth across the country could see borrowers’ budgets start to inch up, rather than down, particularly once the stage three tax cuts start filtering through.’

There are low $600,000 possibilities if they bought a rundown house near Mount Druitt in Sydney’s outer west or a house at St Albans in Melbourne’s north-west.

In Brisbane, that kind of money buys a house at Kallangur in the city’s north. 

Mining-rich Western Australia had the highest average, full-time salary of $109,600 among the states, making it the only one where workers are typically paid in the six figures.

Perth has a median house price of $708,335, following a 17 per cent surge in the year to January, CoreLogic data showed.

Someone earning just under $110,000 can borrow $544,500 to buy a house worth $680,625.

In NSW, the average, full-time salary is $98,353, which means someone can borrow $512,400 to buy a $640,500 home.

This would be insufficient to buy Sydney’s median house, priced at $1.395million, or the middle market unit at $828,525.

Victoria’s average, full-time salary of $96,621 would enable someone to borrow $501,000 to buy a $626,250 house with a 20 per cent deposit.

Someone earning the average, full-time salary of $98,218 can now borrow $511,500, with RateCity revealing banks can lend a borrower who has a 20 per cent deposit 5.2 times their salary (pictured is a Sydney auction)

That is below the median house price in all of Australia’s capital cities. But there are possibilities if they bought a rundown house near Mount Druitt in Sydney ‘s outer west (pictured is a house on a market at Bidwill with a $600,000 auction price guide)

This is well below Melbourne’s median house price of $942,750.

Queensland’s equivalent pay of $95,696 would borrow $494,700 to buy a $618,375 home, which is well below Brisbane’s median house price of $888,628.

South Australia’s average, full-time salary of $90,241 means someone could borrow $458,600 to buy a $573,250 home, which is well below Adelaide’s $774,969 median house price.

Tasmania’s equivalent pay of $86,840 means someone could borrow $436,000 to buy a $545,000 home, a level well under Hobart’s median house price of $692,619.

The Northern Territory’s average pay of $95,306 would enable someone to borrow $492,200 to buy a $615,250 house, which is a bit more than Darwin’s median house price of $578,342.

Canberra’s average salary of $108,150 would allow a professional to borrow $534,900 to buy a $668,625 – a level well below the city’s median house price of $968,248.