Borrowing Power Calculator
Get a realistic estimate of how much you could borrow based on your financial situation and current lending standards.
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You could borrow up to:
Get a free consultation to discuss your results.
Understanding Your Borrowing Power
Your borrowing power is the maximum amount a lender estimates you can afford to borrow. It's calculated by assessing your total income and subtracting your expenses, taxes, and existing debt commitments. Lenders then apply a mandatory 'stress test' using a higher interest rate (as required by the regulator, APRA) to ensure you can still afford repayments if rates rise. This calculator uses this same methodology to provide a realistic estimate.
- Reduce Credit Card Limits: Lenders assess your total credit limit, not just your balance. Lowering the limits on cards you don't use can significantly increase your capacity.
- Pay Down Debts: Clear any personal loans, car loans, or other high-interest debts to reduce your monthly commitments.
- Build a Savings History: Demonstrating a consistent pattern of saving shows lenders you have good financial discipline.
- Declare All Income: Make sure to include consistent overtime, bonuses, or rental income, as this can be partially included in your assessment.
Key Assumptions:
- Loan Term: 30 years.
- APRA Serviceability Buffer: +3.0%.
- Assumed Lender Floor Rate: 5.50% p.a.
- Living expenses are estimated using the Household Expenditure Measure (HEM).
Disclaimer:
The result generated by this calculator is an estimate only and is provided for illustrative purposes. It should not be considered a quote, pre-qualification, or an offer of credit. All applications are subject to the lender's full credit assessment and approval criteria. This calculation does not account for your personal objectives or financial situation, and does not include fees such as Lenders Mortgage Insurance or Stamp Duty. You should seek independent financial advice before making any decisions.
