Borrowing Power Calculator

How much can I borrow? Estimate your maximum home loan based on income, expenses and debts — see your purchase power including stamp duty and fees.

Updated March 2026

Calculate Your Borrowing Power

Enter your details to see how much you could borrow

Income

Your gross annual income before tax

▼

Most home loans are assessed on the total household position.

Applicant 1

$
$

80% shading applied by lenders

Applicant 2

$
$
$

80% typically used by lenders

Living Expenses

Monthly household expenses

▼

Based on single with 0 dependants:

$2,500/month

Benchmark estimate (not lender HEM). Actual lender assessment may be higher.

Estimated Borrowing Power

$0

Maximum home loan amount

Tap for breakdown
Max Property Price$0
Assessment Repayment ? This is what your monthly repayment would be at the assessment rate (interest + buffer), not the actual rate.$0/mo
DTI Ratio ? Debt-to-Income ratio = Total Debt ÷ Annual Income. Under 6 is preferred by most lenders. Over 6 may limit options.0.0GOOD
Your Deposit$0
Next step
Save these numbers first, then decide if you need help.
Email yourself a summary of this calculation, or optionally request a broker call if you want personalised options.

Estimates use typical lender assessment criteria (35% DSR, 3% buffer). Your actual borrowing power may vary by ±20% depending on lender.

Get personalised options (no obligation)

A licensed broker can review your numbers and discuss the best options for your situation.

Based on your numbers — see what a broker can offer
100% free, no obligation Licensed brokers Takes 30 seconds

Borrowing Boost Optimiser — See How to Increase Your Limit

Reduce Credit Card Limit +$0
$0Current: $10,000$50,000
Toggle HECS/HELP +$0
Include HECS debt:
No
Adjust Living Expenses +$0
$1,500Current: $2,500/mo$8,000
Lenders verify expenses. Only use realistic figures you can demonstrate.

Calculation Breakdown

Income Assessment
  • Base income (Applicant 1 + 2)$120,000
  • Rental income (80% shaded)$0
  • Other income (80% shaded)$0
  • Total assessable income (p.a.)$120,000
Monthly Debt Commitments
  • Credit card assessment (3.8% of limit)$380
  • Other loan repayments$0
  • HECS/HELP repayment (2025-26 marginal)$0
  • Total debt commitments$380
Serviceability Check
  • Living expenses (monthly) (benchmark)$2,500
  • Max debt service (35% of gross)$3,500
  • Available for mortgage$3,120
Assessment Assumptions
  • Reference interest rate5.42%
  • Assessment buffer+3.00%
  • Assessment rate used8.42%
  • Debt service ratio (DSR)35% of gross
Purchase Power
  • Borrowing power$0
  • Your deposit$100,000
  • Less: Stamp duty (estimated)−$0
  • Less: Government fees−$300
  • Max property price$0
See repayments for this loan Check stamp duty

How this calculator works

Understanding how lenders assess your borrowing capacity

1

We assess your income

We add up all your income sources including salary, rental income, and other earnings. Lenders typically "shade" (reduce) variable income like bonuses and rental income to 80% to be conservative. This gives your total assessable income.

2

We calculate your debt commitments

Your existing financial commitments reduce your borrowing power. This includes credit card limits (assessed at 3.8% of total limit, even if paid off monthly), car loans, personal loans, and HECS/HELP repayments.

3

We apply the debt service ratio (DSR)

Lenders typically allow around 35% of your gross income to go toward debt repayments (mortgage + existing debts). This is the "debt service ratio" or DSR. Some lenders may use 30-40% depending on your profile.

4

We show your borrowing power and purchase power

Your borrowing power is the maximum loan amount. Your "purchase power" adds your deposit but subtracts stamp duty and government fees — showing the actual property price you could afford. DTI (Debt-to-Income ratio) indicates risk level, with most lenders preferring under 6.

▼ Assumptions & limitations
  • This calculator provides estimates only. Actual borrowing power varies significantly between lenders based on their specific policies, credit scoring, and risk appetite.
  • We use a simplified capacity calculation (35% DSR). Lenders may use HEM (Household Expenditure Measure), proprietary models, or actual expense verification — which is often more conservative than our benchmark estimates.
  • HECS/HELP repayments use the ATO 2025-26 marginal method with $67,000 threshold. Three brackets apply: 15c/$1 over $67k, then $8,700 + 17c/$1 over $125k, then 10% of income above $179,285.
  • Stamp duty calculations use the same engine as our Stamp Duty Calculator with current state/territory rates. Concessions, exemptions, and foreign buyer surcharges are applied based on your selections.
  • DTI (Debt-to-Income) ratio follows APRA Feb 2026 guidance: we warn at 6x+ but don't hard-cap results. High DTI may require specialist lenders or strong borrower profile.
  • This calculator does not assess your credit history, employment stability, genuine savings, or other factors lenders consider.
  • Results should not be used as a substitute for professional financial advice or a formal loan pre-approval.

Frequently Asked Questions

Common questions about borrowing power and home loan capacity

A borrowing power calculator estimates your maximum home loan by analyzing your income, living expenses, existing debts (including credit card limits), and applying lender assessment criteria.

Lenders add a buffer rate (typically 3%) above the current interest rate to test whether you could still afford repayments if rates rise. The calculator finds the maximum loan where repayments at this assessment rate stay within your capacity.

As a very rough guide, you may be able to borrow around 5-6 times your gross annual household income. However, actual borrowing power varies significantly based on your expenses, existing debts, credit card limits, and individual lender criteria.

For example, someone earning $120,000 p.a. with minimal debts might borrow $500,000-$650,000, but high living expenses or credit card limits could reduce this significantly.

Lenders assess your full credit card limit as a potential debt, not just your current balance. They typically calculate 3-3.8% of your total credit limit as a monthly commitment.

For example, a $20,000 credit card limit reduces your borrowing power by approximately $50,000-70,000 — even if you pay it off every month. Reducing unused credit limits is one of the quickest ways to boost borrowing power.

DTI (Debt-to-Income) ratio compares your total debt to your gross annual income. It's calculated as: Total Debt ÷ Gross Annual Income.

Most lenders prefer DTI under 6. A DTI of 6 or above is considered "high risk" by APRA and may limit your lender options or require a larger deposit.

Yes, HECS/HELP debt reduces your borrowing power because lenders include the compulsory repayments as an existing debt commitment. The repayment amount is based on your income level.

For income above the threshold ($67,000 for 2025-26), HECS repayments are calculated using a marginal system — 15c per $1 over $67k, rising to 10% of income above $179,285. This reduces how much you can borrow.

No — each bank has its own proprietary assessment criteria and may give different results. Our calculator uses typical industry assessment standards but is not affiliated with any specific lender.

Bank calculators may be more conservative or may include additional factors. Always get pre-approval from your chosen lender for an accurate figure.

Disclaimer: This calculator provides estimates only based on typical lender assessment criteria. Actual borrowing power varies significantly between lenders based on their individual policies, credit scoring, your full financial situation, and market conditions. This is not financial advice — always get pre-approval from your chosen lender or speak with a qualified mortgage broker before making financial decisions.