Borrowing Power Calculator
How Much Could You Borrow for a Home Loan?
Use the borrowing power calculator as a starting point to estimate how much you may be able to borrow. Your actual borrowing capacity will depend on the lender, your income, expenses, commitments and individual circumstances.
Calculate an Estimate
Borrowing Power Calculator
Enter your income, expenses and existing commitments into the calculator below for a general estimate of your potential borrowing capacity.
What Affects Borrowing Capacity?
Your Borrowing Power Is About More Than Your Income
Lenders assess a combination of income, expenses, debts, loan structure and policy requirements when determining how much they may be prepared to lend.
Income
Salary, wages, self-employed income, rental income and other eligible income can be treated differently between lenders.
Living Expenses
Household and ongoing living costs form an important part of lender serviceability assessments.
Existing Debts
Credit cards, personal loans, car finance, HELP debt and other commitments can reduce borrowing capacity.
Dependants
The number of dependants and household circumstances can affect the expenses used in a lender’s assessment.
Interest Rate and Loan Type
Variable, fixed, investment and interest-only lending can be assessed differently depending on the lender and structure.
Lender Policy
The same applicant can receive different borrowing outcomes because lenders use different credit and servicing policies.
Understanding Serviceability
Why the Calculator Result Can Differ From a Lender Assessment
Lenders do not assess a new home loan using only the advertised interest rate. APRA-regulated banks currently apply a minimum mortgage serviceability buffer of 3 percentage points above the loan interest rate, and individual lenders may apply additional policy requirements.
- Assessment rates can be higher than the actual loan rate
- Existing debts may be assessed at stressed repayments
- Credit-card limits can affect borrowing even if unused
- Income types can be shaded or treated differently
- Living-expense methods vary between lenders
- Self-employed policies can differ substantially
- Investment income may not be used at 100%
- Maximum borrowing does not mean maximum comfort
Next Steps
Turn the Estimate Into a More Meaningful Borrowing Assessment
Run the Calculator
Use the calculator for an initial indication based on the information you enter.
Review Your Position
We can review your income, commitments, deposit and goals against suitable lender policies.
Consider Pre-Approval
Where appropriate, we can help with a pre-approval application so you can approach your property search with greater clarity.
Frequently Asked Questions
Borrowing Power Questions
Is the calculator result the amount a bank will lend me?
No. It is an estimate only. A lender will complete its own serviceability and credit assessment using its current policies, verified income, expenses and commitments.
Why can two lenders give me different borrowing amounts?
Lenders can use different assessment rates, income treatment, expense assumptions and credit policies, so borrowing outcomes can vary even when the underlying financial information is the same.
Does an unused credit card reduce borrowing capacity?
It can. Lenders commonly assess credit-card commitments using the approved limit rather than only the current balance, although the exact treatment varies.
Is it a good idea to borrow the maximum amount available?
Not necessarily. A lender’s maximum borrowing figure is not the same as a comfortable household budget. Your preferred repayment level and future plans should also be considered.
Can a broker help improve my borrowing options?
A broker can compare lender policies and help identify lenders whose servicing treatment may better suit your circumstances. This does not guarantee approval or a particular borrowing amount.
Want a More Accurate View of Your Borrowing Position?
Book a free initial conversation with OCEAN Lending. We can discuss your income, commitments, deposit and property goals and explain which lender policies may be relevant to your situation.
Email: scott@oceanlending.com.au
The information and calculator results on this page are general estimates only and do not take into account your objectives, financial situation or needs. Borrowing capacity varies between lenders and is subject to lender policy, serviceability, credit assessment, verification and formal approval. Interest rates, assessment methods and lending criteria can change.